This office lease is subject and subordinate to all ground or underlying leases and to all mortgages which may affect the lease or the real property of which demised premises are a part and to all renewals, modifications, consolidations, replacements and extensions of any such underlying leases and mortgages. This clause shall be self-operative.
The Michigan Subordination Provision refers to a legal concept that determines the priority of debts or liens when multiple parties have a claim on a property or asset in the state of Michigan. In simple terms, it defines the order in which creditors get paid in the event of a foreclosure, bankruptcy, or other legal proceedings. This provision is crucial in determining the rights and obligations of different parties involved in a financial transaction. Under Michigan law, there are different types of subordination provisions that come into play in various situations: 1. Real Estate Subordination Provision: This type of subordination provision is commonly used in real estate transactions when multiple mortgages or liens exist on a property. It establishes the priority of these liens and determines the order in which they will be paid. For example, a first mortgage typically takes precedence over a second mortgage in terms of repayment priority. 2. Subordination Agreement: A subordination agreement is a legally binding contract between two or more creditors of a debtor. This agreement outlines their consent to subordinate their respective interests in a property or asset, essentially agreeing to change the priority of their claims. Such agreements are often used during refinancing or restructuring situations. 3. Subordination of Mechanics Lien: In the construction industry, subcontractors or suppliers may file a mechanics lien against a property to secure payment for the work or materials provided. However, if a lender has a mortgage on the property, the mechanics lien may be subordinated to the mortgage, meaning that the lender's interest takes priority over the lien. 4. Subordination of Judgment Lien: When a court grants a judgment against an individual or company for unpaid debts, a judgment lien is created, allowing the creditor to claim the debtor's property. However, if another creditor has a prior lien on the property, the judgment lien can be subordinated to satisfy the prior creditor's claim first. It is important to note that specific provisions and rules regarding subordination may vary depending on the context, lender agreements, and individual circumstances. Therefore, it is advisable to consult an attorney or legal expert to fully understand the implications and application of Michigan Subordination Provisions in a particular scenario.
