Alabama Subordination Agreement - Lien
Description
How to fill out Subordination Agreement - Lien?
You can spend time online looking for the legal document template that satisfies the state and federal requirements you need.
US Legal Forms provides a vast array of legal forms that have been evaluated by experts.
It is easy to obtain or create the Alabama Subordination Agreement - Lien through our services.
If available, use the Preview button to browse the document template as well.
- If you have a US Legal Forms account, you can Log In and click the Acquire button.
- Then, you can complete, modify, create, or sign the Alabama Subordination Agreement - Lien.
- Every legal document template you purchase is yours permanently.
- To obtain another copy of any purchased form, go to the My documents tab and click the corresponding button.
- If you are using the US Legal Forms site for the first time, follow the simple steps below.
- First, ensure that you have chosen the correct document template for the county/area you select.
- Review the form description to confirm you have chosen the right form.
Form popularity
FAQ
A subordination agreement must be signed and acknowledged by a notary and recorded in the official records of the county to be enforceable.
There are two ways to subordinate tranches of debt so that one tranche takes priority over the other. The first is called lien subordination, in which two forms of senior, equally ranked debt share the same collateral, but one is given priority over that collateral in case of liquidation.
Subordinated debt (also known as a subordinated debenture) is an unsecured loan or bond that ranks below other, more senior loans or securities with respect to claims on assets or earnings. Subordinated debentures are thus also known as junior securities.
Example of a Subordination Agreement A standard subordination agreement covers property owners that take a second mortgage against a property. One loan becomes the subordinated debt, and the other becomes (or remains) the senior debt. Senior debt has higher claim priority than junior debt.
Subordination agreement is a contract which guarantees senior debt will be paid before other ?subordinated? debt if the debtor becomes bankrupt.
A Subordination Agreement is a legal document that establishes the priority of liens or claims against a specific asset.
A subordination clause is a clause in an agreement that states that the current claim on any debts will take priority over any other claims formed in other agreements made in the future. Subordination is the act of yielding priority.
Subordination agreements are used to legally establish the order in which debts are to be repaid in the event of a foreclosure or bankruptcy. In return for the agreement, the lender with the subordinated debt will be compensated in some manner for the additional risk.
