A New Jersey Subordination Agreement is a legally binding document that outlines the prioritization of different debts when it comes to repayment. In this specific context, the agreement is drafted to include future indebtedness to a secured party. This means that it establishes the order in which the debts owed by the debtor will be repaid, with the secured party having priority over other creditors if the debtor defaults. The purpose of a Subordination Agreement is to clearly define the rights and claims of each party involved in a lending arrangement. By entering into this agreement, the debtor concedes that the secured party's claim over the assets or collateral provided as security will be superior to any subsequent obligations or debts incurred in the future, should the debtor become indebted to another party. Keywords: New Jersey Subordination Agreement, future indebtedness, secured party, prioritization, repayment, debtor, creditors, default, lending arrangement, rights, claims, assets, collateral. Different types of New Jersey Subordination Agreements to Include Future Indebtedness to Secured Party: 1. General Subordination Agreement: This agreement encapsulates all current and future debts owed by the debtor, ensuring that the secured party will have priority over any other creditors, regardless of the type or nature of the debts. 2. Specific Subordination Agreement: Sometimes, a Subordination Agreement only pertains to certain debts or obligations while excluding others. For instance, if a debtor takes on a specific loan or incurs a particular type of debt, they may agree to subordinate the repayment of that specific debt to the secured party, but not other unrelated debts. 3. Limited Subordination Agreement: This type of agreement may be used when the debtor anticipates obtaining future indebtedness but wants to limit the extent to which the repayment of those future obligations will be subordinate to the secured party. Both parties can negotiate and specify the precise conditions or thresholds for subordination. 4. Subordination Agreement with Release Provisions: In certain instances, an agreement might outline conditions under which the secured party agrees to release their claim on the debtor's assets or collateral upon receipt of partial or complete repayment of the future indebtedness. This can be beneficial for debtors, allowing them to secure financing without being entirely subordinate to the secured party indefinitely. By considering and carefully drafting a New Jersey Subordination Agreement to Include Future Indebtedness to Secured Party, both the debtor and secured party can establish a clear hierarchy of repayment, protecting the interests of all parties involved.