subordination agreement


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subordination agreement

n. a written contract in which a lender who has secured a loan by a mortgage or deed of trust agrees with the property owner to subordinate the first loan to a new loan (thus giving the new loan priority in any foreclosure or payoff). The agreement must be acknowledged by a notary so it can be recorded in the official county records. (See: subordination)

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A subordination agreement, where the parties agree to subordinate lien rights to (usually) a mortgage interest, is enforceable, even if made before the lien rights have arisen.
a subordination agreement from the lender holding an outstanding
It also required the Kaufmans to acquire a subordination agreement from the bank that held a mortgage on the property to satisfy the perpetuity provision of the Code.
Mitchell had argued to the court that the mortgage was subordinated by virtue of the subordination agreement signed by the mortgagee, Clyde Sheek; in 2005.
Standridge returned with a signed subordination agreement from Phillip Ellis, the president of the Clinton branch of First Service Bank, so Chamber made the loan.
29) The bankruptcy court held that the subordination agreement could not affect the voting rights of the junior lienor in bankruptcy pursuant to section 510(a) of the Bankruptcy Code which provides that the holder of a claim may vote to accept or reject a plan under Chapter 11.
The two most common legal documents are the inter-creditor agreement and the subordination agreement.
Therefore, if a mortgage exists, the property owner (or one's legal counsel) must submit a mortgage subordination agreement, with a copy of the conservation easement deed, to each mortgage lender for its approval.
It would refinance only if Lim could get a subordination agreement with DeBerard, which kept the seller's position behind the mortgage company.
Hirschfeld further dismissed as irrelevant the fact that Elie was named as a secretary of the Vertical Club Corporation in papers filed in a subordination agreement, saying they dated back to 1985.
First Commercial also claims that Chambers and Melton have violated the loan's subordination agreement, choosing to pay corporate debt owed to Chambers rather than paying on the bank loan.
the Company has delivered to SIIF a subordination agreement, executed by each of John Phelps, Shue Wing Chan and Ocean SW, Inc.