SUBORDINATION AND MORTGAGES Clause Samples
The Subordination and Mortgages clause establishes the priority of the lease in relation to current or future mortgages on the property. Typically, this clause allows a landlord’s mortgage to take precedence over the tenant’s lease, meaning that if the property is foreclosed, the mortgage lender’s rights come before those of the tenant. In practice, tenants may be required to sign documents agreeing to this arrangement, and landlords may seek to obtain agreements from lenders to protect the tenant’s rights in certain situations. The core function of this clause is to clarify the hierarchy of interests in the property, thereby reducing legal uncertainty and protecting the interests of lenders and landlords in financing arrangements.
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SUBORDINATION AND MORTGAGES. In the event Landlord's title or leasehold interest is now or hereafter encumbered by a deed of trust, upon the interest of Landlord in the land and buildings in which the demised Premises are located, to secure a loan from a lender (hereinafter referred to as "Lender") to Landlord, Tenant shall, at the request of Landlord or Lender, execute in writing an agreement subordinating its rights under this Lease to the lien of such deed of trust, or, if so requested, agreeing that the lien of Lender's deed of trust shall be or remain subject and subordinate to the rights of Tenant under this Lease. Notwithstanding any such subordination, Tenant's possession under this Lease shall not be disturbed if Tenant is not in default and so long as Tenant shall pay all rent and observe and perform all of the provisions set forth in this Lease.
SUBORDINATION AND MORTGAGES. In the event Landlord’s title or leasehold interest is now or hereafter encumbered by a deed of trust, upon the interest of Landlord in the land and buildings in which the demised Premises are located, to secure a loan from a lender (hereinafter referred to as “Lender”) to Landlord, Tenant shall, at the request of Landlord or Lender, execute in writing an agreement subordinating its rights under this Lease to the lien of such deed of trust, or, if so requested, agreeing that the lien of Lender’s deed of trust shall be or remain subject and subordinate to the rights of Tenant under this Lease. Tenant hereby irrevocably appoints Landlord the attorney in fact of Tenant to execute, deliver and record any such instrument or instruments for and in the name and on behalf of Tenant. Notwithstanding any such subordination, Tenant’s possession under this Lease shall not be disturbed if Tenant is not in default and so long as Tenant shall pay all rent and observe and perform all of the provisions set forth in this Lease. Tenant agrees to send to any mortgagees and/or deed of trust holders, by registered mail, a copy of any notice of default served by Tenant upon the Landlord, provided that prior to such notice, Tenant has been notified, in writing (by way of notice of assignment of rents or otherwise) of the addresses of such mortgagees and/or deed of trust holders. Tenant further agrees that if Landlord shall have failed to cure such default within the time provided for in this Lease, any such mortgagees and/or deed of trust holders shall have an additional thirty (30) days within which to cure such default, or if such default is not reasonably susceptible of cure within that time, then such additional time as may be reasonably necessary if within such (30) days, any mortgagee and/or deed of trust holder has commenced and is diligently pursuing the remedies necessary to cure such default, (including but not limited to commencement of foreclosure proceedings), in which event this Lease shall not be terminated when such remedies are being diligently pursued.
SUBORDINATION AND MORTGAGES. Paragraph 20 is modified to provide that, provided Tenant is not in default in the terms of this Lease, this Lease shall not be subordinate to a mortgage or deed of trust unless the Lender holding such mortgage or deed of trust enters into a written subordination, non-disturbance and attornment agreement in which the Lender agrees that notwithstanding any subordination of this Lease to such Lender's mortgage or deed of trust, (i) such Lender shall recognize all of Tenant's rights under this Lease, and (ii) in the event of a foreclosure, this Lease shall not be terminated so long as Tenant is not in default of its obligations under this Lease, but shall continue in effect and Tenant and such Lender (or any party acquiring the Premises through such foreclosure) shall each be bound to perform the respective obligations of Tenant and Landlord with respect to the Premises arising after such foreclosure.
SUBORDINATION AND MORTGAGES. In the event Landlord’s title or leasehold interest is now or hereafter encumbered by a deed of trust, upon the interest of Landlord in the Premises and Building in which the demised Premises are located, to secure a loan from a lender (hereinafter referred to as “Lender”) to Landlord, Tenant shall, at the request of Landlord or Lender, execute in writing an agreement (in form reasonably acceptable to Tenant), subordinating its rights under this Lease to the lien of such deed of trust, or, if so requested, agreeing that the lien of Lender’s deed of trust shall be or remain subject and subordinate to the rights of Tenant under this Lease. Notwithstanding any such subordination, Tenant’s possession under this Lease shall not be disturbed if Tenant is not in default (and if in default, Tenant’s right to cure said default has not expired) and so long as Tenant shall pay all Rent and observe and perform all of the provisions set forth in this Lease and any subordination agreement shall reflect the agreement of the Lender to the same.
SUBORDINATION AND MORTGAGES. In the event Landlord’s title or leasehold interest is now or hereafter encumbered by a deed of trust and/or other related instruments (“Security Instruments”) placed upon the land and Buildings in which the Premises are located to secure a loan from a lender (“Lender”) to Landlord, Tenant shall without any consideration whatsoever, immediately upon the request of Landlord or Lender, execute in writing (i) an agreement subordinating Tenant’s rights under this Lease to the lien of such “Security Instruments” and/or, if so requested (ii) an agreement that the lien of Lender’s Security Instruments shall remain subject to and subordinate to the rights of Tenant under this Lease; plus (iii) any releases or other documents incident thereto including, without limitation, a current statement of Tenant’s financial condition. In the event the interest of Landlord in such land and Buildings is encumbered by a deed of trust, and such interest is acquired by the Lender or any third party by reason of foreclosure, then Tenant hereby agrees to attorn to such purchaser at any such foreclosure and thereafter to recognize such purchaser as the Landlord under this Lease. Notwithstanding any such subordination or foreclosure, the express terms of this Lease shall not be modified, and Tenant’s rights and possession under this Lease shall not be disturbed provided that Tenant is not then in default hereunder, and for so long as Tenant shall thereafter pay all rent and [UNREADABLE].
SUBORDINATION AND MORTGAGES. In the event Landlord's title or leasehold interest in the Premises or the Complex is now or hereafter encumbered by the lien of any mortgage or deed of trust to secure a loan from a lender (hereinafter referred to as a "Lender") to Landlord, Tenant shall, at the request of Landlord or Lender, execute in writing an agreement subordinating its rights under this Lease to the lien of such mortgage or deed of trust, or, if so requested, agreeing that the lien of Lender's mortgage or deed of trust shall be or remain subject and subordinate to the rights of Tenant under this Lease. Notwithstanding any such subordination, Tenant's possession under this Lease shall not be disturbed if Tenant is not in default and so long as Tenant shall pay all Rent and fully and faithfully observe and perform all of the provisions set forth in this Lease. Tenant acknowledges that upon receipt from a lender of "Demand to Pay Rent to Party other than Landlord" under Section 2936 of the California Civil Code, Tenant shall be required to pay all Rents to the Lender as they become due.
SUBORDINATION AND MORTGAGES. In the event Landlord's title or leasehold interest is now or hereafter encumbered by a deed of trust; upon the interest of Landlord in the land and buildings in which the demised Premises are located, to secure a loan from a lender (hereinafter referred to as "Lender") to Landlord, Tenant shall, at the request of Landlord or Lender, execute in writing an agreement subordinating its rights under this Lease to the lien of such Lease. Notwithstanding any such subordination, Tenant's possession under this Lease shall not be disturbed if Tenant is not in default and so long as Tenant shall pay all rent and observe and perform all of the provisions set forth in this Lease.
SUBORDINATION AND MORTGAGES. (CONTINUED): Notwithstanding anything to the contrary contained in Paragraph 20 of this Lease, Tenant's agreement to subordinate to any existing or future lender shall be conditional upon the receipt by Tenant of a non-disturbance agreement on such lender's commercially reasonable form, executed by Landlord and such lender.
SUBORDINATION AND MORTGAGES. Section 31.01. For so long as the Original Tenant is the Tenant under this Lease, Landlord covenants and agrees not to mortgage or otherwise encumber the Real Property, or any part thereof, and not to assign the rents and profits therefrom, prior to the expiration or earlier termination of the Term of this Lease other than in connection with the granting of mortgage liens on the Real Property or any assignment of the rents and profits therefrom or upon any permitted ground lease of the Real Property to one or more recognized lending institutions. The term "recognized lending institution" shall mean a savings bank, a commercial bank or trust company, an insurance company, a nationally recognized investment banking company, or Affiliates of the foregoing, an educational institution or a state, municipal or similar public employees' welfare pension or retirement fund or system (whether acting individually or in any fiduciary capacity), or any pension fund having any such bank, trust company, insurance company or investment banking company as its advisor, or any pension fund for the sole benefit of employees of a corporation listed on any national stock exchange or recognized "over-the-counter" market, or any pension fund for the benefit of employees of the government of any State or any subdivision or agency thereof or any trust or other entity established or managed by any of the foregoing to make mortgage loans; or any "real estate investment trust "whose securities are listed on any national stock exchange or recognized "over the counter" market, or any REMIC, trust or other entity twenty-five percent (25%) or more of the interests in which are rated as "investment grade" by a nationally recognized mortgage rating agency; provided such institution shall be subject to the jurisdiction of the courts of the State of New York in any action or to the supervision of the Comptroller of the Currency of the United States of America or other United States bank or securities regulatory agencies or of the insurance or banking department of the State of New York, or of the state of incorporation of such institution or of the insurance or banking department thereof, or of the Board of Regents of the University of the State of New York as applicable, which in each case is not an Affiliate of Landlord. Any such mortgage made to a recognized lending institution or to an Affiliate of a recognized lending institution is herein referred to as an "Institutional Mortgage". Notw...
SUBORDINATION AND MORTGAGES. In the event Landlord's title or leasehold interest is now or hereafter encumbered by a deed of trust, upon the interest of Landlord in the land and buildings in which the demised Premises are located, to secure a loan from a lender (hereinafter referred to as "Lender") to Landlord. Tenant shall, at the request of Landlord or Lender, execute in writing an agreement subordinating its rights under this Lease to the lien of such deed of trust, or, if so requested, agreeing that the lien of Lender's deed of trust shall be or remain subject and subordinate to the rights of Tenant under this Lease. Notwithstanding the foregoing. See Paragraph 49.