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.
A New York Subordination Provision is a legal clause that outlines the priority of liens or claims on a property or asset in the state of New York. It ensures that one party's lien or claim takes precedence over another, establishing a hierarchy of rights to the property or asset in question. This provision is commonly used in real estate transactions or commercial lending arrangements to protect lenders or creditors. There are several types of New York Subordination Provisions, including: 1. Mortgage Subordination Provision: This type of provision is frequently used in real estate transactions when a borrower seeks additional financing. It allows a subsequent mortgage lender to take priority over the first mortgage lender for repayment in case of default. 2. Intercreditor Subordination Provision: This provision is utilized when multiple creditors have claims on the same debtor's assets. It determines the priority of repayments and establishes the subordinate nature of certain creditors' claims, typically to secure a higher-ranking creditor's interests. 3. UCC Subordination Provision: Under the Uniform Commercial Code (UCC), this provision governs the priority of security interests in personal property. It ensures that secured lenders have rights to the collateral superior to those of unsecured creditors or subsequent secured lenders. 4. Leasehold Subordination Provision: When a property with a leasehold interest is mortgaged or sold, this provision is often used to subordinate the rights of the tenant or lessee to the rights of the lender or buyer. It protects the purchaser or lender by ensuring their interests are superior to that of the tenant or lessee. In summary, a New York Subordination Provision is a crucial legal clause that establishes the priority of liens or claims on a property or asset in the state of New York. It protects lenders, creditors, and other parties involved in real estate transactions or commercial lending arrangements by determining the hierarchy of rights. Different types of New York Subordination Provisions include mortgage subordination, intercreditor subordination, UCC subordination, and leasehold subordination provisions.
