Subordination and Acknowledgment Clause Samples
The Subordination and Acknowledgment clause establishes that a party’s rights or interests in certain property or agreements are ranked below, or made subject to, the rights of another party, typically a lender or senior creditor. In practice, this means that if there is a conflict or claim—such as in the event of default or liquidation—the subordinated party agrees that their claims will be satisfied only after the senior party’s claims have been addressed. This clause is essential for clarifying the priority of claims, thereby reducing disputes and facilitating financing arrangements by assuring senior parties of their preferential position.
Subordination and Acknowledgment. This Lease shall at the option of the Landlord or the mortgagee under any mortgage now or hereafter existing affecting the Development, exercisable at any time and from time to time by the Landlord or such mortgagee, be either subject and subordinate to such mortgage and accordingly not binding upon such mortgagee or alternatively rank prior to such mortgage and accordingly be binding upon such mortgagee. On request at any time and from time to time of the Landlord or such mortgagee, the Tenant shall either postpone and subordinate this Lease or any caveat based thereon to such mortgage with the intent and effect that this Lease and all rights of the Tenant shall be subject to the rights of such mortgagee as fully as if the mortgage (regardless of when made) had been made prior to the making of this Lease, or alternatively to attom to such mortgagee and become bound to it as its tenant of the Leased Premises for the then expired residue of the Term and upon the terms and conditions contained in this Lease, in each case as the Landlord or such mortgagee may require. Without limiting the foregoing (and notwithstanding that any previous attornment or subordination in favour of such mortgagee shall have been given) the Tenant shall execute promptly the appropriate instrument or postponement and subordination or alternatively the reasonable and customary appropriate instrument of attornment, as the case may be, in order to give effect to the foregoing.
Subordination and Acknowledgment. This Lease shall at the option of the Landlord or the mortgagee under any mortgage or the beneficiary under any deed of trust now or hereafter existing affecting the Development, exercisable at any time and from time to time by the Landlord or such mortgagee or beneficiary, be either subject and subordinate to such mortgage and accordingly not binding upon such mortgagee or alternatively rank prior to such mortgage or deed of trust and accordingly be binding upon such mortgagee or beneficiary. On request at any time and from time to time of the Landlord or such mortgagee or beneficiary, the Tenant shall subordinate this Lease to such mortgage or deed of trust with the intent and effect that this Lease and all rights of the Tenant shall be subject to the rights of such mortgagee or beneficiary as fully as if the mortgage or deed of trust (regardless of when made) had been made prior to the making of this Lease, or alternatively to attorn to such mortgagee or beneficiary and become bound to it as its tenant of the Leased Premises for the then expired residue of the Term and upon the terms and conditions contained in this Lease, in each case as the Landlord or such mortgagee or beneficiary may require provided, however, as long as Tenant is not in default under this Lease, the mortgagee or beneficiary shall not disturb Tenant's right to possession of the Leased Premises. Without limiting the foregoing (and notwithstanding that any previous attornment or subordination in favor of such mortgagee or beneficiary shall have been given) the Tenant shall execute promptly the appropriate instrument of subordination or alternatively the appropriate instrument of attornment as the case may be, in order to give effect to the foregoing. Landlord agrees to provide Tenant with a reasonably acceptable subordination, attornment and non-disturbance agreement from Landlord's lender.
Subordination and Acknowledgment. This Lease is subject and subordinate to any contract, hypothec, emphyteusis, principal lease or any other encumbrance related to any method of financing or refinancing, which may, now or at any time in the future, affect in whole or in part the Leased Premises. This Lease is also subject to and subordinate to all renewals, modifications, consolidations, replacements or extensions of each of these hypothecs, emphyteuses, leases or encumbrances. At all times and from time to time the Lessor may, in writing and without any other consent or separate agreement on the part of the Lessee, postpone this Lease or subordinate or transfer the registration priority of this Lease to said hypothecs, emphyteuses, leases or encumbrances. Furthermore, the Lessee hereby undertakes to execute all documents required to give effect to this clause provided the Lessee receives a non-disturbance agreement from any successor hypothecary creditor.