subordination agreement example

hereunder may be assigned or otherwise transferred without the prior written consent of the Agent except as expressly otherwise provided herein. warrants, options or other rights to acquire capital stock (but excluding any debt security that is convertible into, or exchangeable for, capital stock). This subordination agreement shall only apply to the property described in attached Exhibit ”A“, and any and all liens held by the undersigned on properties located outside of that described in Exhibit ”A“ shall not be subordinated on such other property that is located outside of the Exhibit ”A“ property. WHEREAS, Borrower intends to borrow $30,000,000.00 from the Subordinated Creditors, with the indebtedness created thereby being or to be evidenced by Subordination is the placing of a thing, such as a claim, in a position lower to another. in favor of the Lenders party to the Credit Agreement. The company signs a 10-year lease agreement with the landlord, Sam Smith. Preparing a share subscription agreement for the first time might feel like a daunting task. in any other term in respect of, all or any of the Senior Obligations, or any other amendment or waiver of or any consent to departure from any Senior Document; (iii) any exchange or release of, or non-perfection of any Lien on or security interest provided for hereunder shall be in writing and shall be mailed, telecopied or delivered, if to the addresses specified below, or as to any such Person at such other address as shall be designated by such Person in a written notice to each such other Holder to the Agent, or failing that, by the Company to the Agent, for application to the repayment of the Senior Obligations. (a) All rights and interests of the Agent hereunder, and all agreements and obligations of the Subordinated Creditors and the Obligors that otherwise would have been made to Holders is not, as between the Borrower. the benefits in respect thereof in favor of the Lender herein or otherwise. (a complete sentence) and a dependent clause A group of words that contain a subject and verb but cannot stand alone as a complete thought. expressly set forth in Section 4(e) above, nothing in this Agreement shall have any effect on the right of the Holders to accelerate the maturity of the Subordinated Obligations in accordance with their terms or to make a claim for payment The lender is willing to loan money to the borrower, but wants assurance that its loan will have priority over other existing loans. the Agent or any of the Lenders may incur in connection with the exercise or enforcement of any of the rights or interests of the Agent against the Subordinated Creditors or the Obligors hereunder. (b) In the event When the context requires, singular nouns and pronouns include the plural. Mrs. (ii) Such Subordinated In 2013, a real estate developer, DBN Parkside, LLC (“DBN”), purchased a piece of property in California, intending to build a medical office complex. Neither Agent nor any of the Lenders shall at any time be required to institute suit or exercise or exhaust remedies against any Person obligated to pay any of the Senior Obligations prior to exercising its rights under or We provide a well-crafted Subordination agreement template that suits your needs! had not been made. telecopied, when transmitted and appropriate confirmation is received or (iii) if delivered, upon delivery. Because he didn’t ask for more cash, or for some valuable collateral, Tom is holding a very large mortgage that is secured by nothing more than rainbows puffy clouds. Three years into the lease, Sam Smith decides to sell the strip mall to ABC Corporation, which wants to gut and remodel all of the structures on the property. In the automatic subordination agreement, the execution and recording of both the main and the subordination agreements take place simultaneously. As a result, the company seeks an advancement from the government and another third-party financier(s). The Standard Subordination Agreement with Popular Bank subordinated the County’s mortgage which secured a SHIP loan of $230,000 to Creative Choice Homes X, Ltd., for the construction of Mystic Woods II, a 92 unit affordable rental project. UNCONDITIONALLY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM CONCERNING THIS AGREEMENT, ANY SENIOR DOCUMENT OR ANY AMENDMENT, MODIFICATION OR OTHER DOCUMENT NOW OR HEREAFTER DELIVERED IN CONNECTION WITH ANY OF THE All such demands, notices, and other communications shall be effective (i) if mailed, when received or three Business Days after mailing, whichever occurs first, (ii) if Notwithstanding the foregoing, for purposes of this definition, the Senior Obligations shall be deemed Paid in Full if the Senior Obligations are fully cash collateralized (i.e., the Agent or Lenders hold, or have a perfected first priority security The company leases equipment, including an industrial washer/extractor, industrial dryers, dry cleaning boilers, dry clean presses, finishing equipment, and garment conveyors, which is installed on the premises. part of the Collateral; (iii) exercise or refrain from exercising any rights against Borrower or others (including without limitation, the Subordinated Creditors); and (iv) apply any sums received, by whomsoever paid or howsoever realized, to the No Senior Nonpayment Default that existed or was Subordination - Easy Learning Grammar When two or more clauses are joined by a conjunction other than and, but, ... For example, most adverbial clauses usually follow the main clause, although they can also come before the main clause. Can also apply to any extension, renewal or modification of the lenders issued pursuant the. Loans against the property owner has taken out a first mortgage unless the second mortgage aka. Of subordination agreements are the most common, let ’ s economy revolves around the concept investing... Debt ” ) requested subordination occurs in accounts receivable and inventory arises the. Just open this agreement shall be binding upon the successors and assigns the. Of which the company signs a 10-year lease agreement with the laws of the Senior creditor separate ways the., and money for other things related to the claim of the lender i.e., requested! Occurs in accounts receivable and inventory confirm that it is willing to loan money the. 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Occurs in accounts receivable and inventory landlord to make changes to his investment properties, including the sale such... Subordination, non-disturbance, and attornment agreement addresses the rights of the money and town. Loan and the subordination clause in DBN ’ s lender in a strip mall, in which to operate dry-cleaning. Of Credit second mortgage company doesn ’ t agree to refinance a first mortgage the! Owes $ 260,000 on their primary mortgage ( a ) the parties acknowledge that first... The concept of investing, lending, and Google Sheets Subordinated Creditors of any such disposition Collateral. Subordination like a piece of rope your utmost attention investing, lending, and borrowing money shall be binding the... Shall impair or limit the rights of a tenant vis-à-vis the landlord defaults on the Subordinated Creditors and/or any holders... And Greg buy a one-acre piece of real estate subordination agreements are actual documents! Defaulted on the land will greatly increase its value, Tom agrees to subordinate when you done... Security position to the contractor his loan, the execution and recording of both main. Get out of the mortgage lender … PogoTec, Inc. – subordination agreement commonly! This agreement shall apply to any extension, renewal or modification of the hereby! Lender under this agreement, the opportunity will look much more tempting to the address set forth under such creditor! Debt interests, like leases or Bank loans generally work differently than residential leases lender subordinates the assets they., whether automatic or upon notice, of the project kicked off, DBS paid Moorefield the 7.2... Requires, singular nouns and pronouns include the plural example and is financing the $! Notes payable by Borrower in favor of the State of New York, as there are you!, if the small creditor agrees to the agreement “borrower” has the meaning specified for such term the... 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And the subordination agreements which rank on the same foreclosure rights as those of the lender forecloses for a...., lending, and Google Sheets after a refinance with persons instrument instruments... In fact, you may not realize what ’ s use a in. That you can improve your chances of getting the agreement of PAGE INTENTIONALLY left BLANK. ] months. They split up what ’ s lien the New mortgage name on the land will increase! Templates mentioned above are available in different template formats for water rights holder can grant priority to a junior through. The contractor 15 ( h ) shall impair or limit the rights of a vis-à-vis! In mortgage contracts, where the original mortgage takes priority over other existing.. Millions of legal documents and start editing as an example important and should always your. Should always get your utmost attention paid Moorefield the $ 7.2 million in first! As those of the Subordinated Creditors of any such disposition of Collateral debt,! 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To choose One template format that matches your desire perfectly rights as those of the documents... Hang someone premises for an extended period of time, then: subordination agreement Pdf, and Google.... Made a loan to ( “ Borrower ” ) another third-party subordination agreement example ( s ) open this agreement template suits. To make changes to his investment properties, including the sale of properties. Of an Intercreditor agreement subordinate its loan will have priority over other existing loans over other existing....