LENDER SUBORDINATION AGREEMENTLender Subordination Agreement • May 5th, 2020
THEREFORE, in consideration of the Government's agreement to make such loan to the Borrower, the Lender (a) consents to the borrower obtaining the loan from the Government for such purposes; and (b) agrees to and does subordinate in favor of the Government its liens and security interests created or evidenced by the above-described instruments insofar as they cover the following described property and provided the Government perfects a lien on that property (12):
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.
