Common Contracts
1 similar Lender Subordination Agreement contracts
EXHIBIT # LENDER SUBORDINATION AGREEMENTLender Subordination Agreement • June 22nd, 2022
Minn. Stat. 114E.10 (d)(1) says an interest (such as a mortgage) that has priority under other law is not affected by an environmental covenant unless the person that owns the interest (such as a lender) subordinates that interest to the covenant. The sole purpose of this subordination agreement is to ensure continuity of the environmental covenant and easement if the property is conveyed through foreclosure, deed in lieu of foreclosure, or termination of a contract-for-deed. According to Minn. Stat. 114E.10(d)(4), an agreement by a person (such as a lender) to subordinate a prior interest to an environmental covenant affects the priority of that person’s interest but does not by itself impose any affirmative obligation on the person with respect to the environmental covenant, unless and until the person becomes an owner, as described in the environmental covenant and easement.
