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.
Oregon Subordination Provision is a legal clause that establishes the priority of debt repayment in various financial transactions within the state of Oregon, United States. This provision is commonly found in loan agreements, real estate mortgages, and other financial contracts where multiple parties have a claim on a property or asset. The Oregon Subordination Provision essentially determines the order in which creditors get paid based on the priority of their liens or security interests. In the event of default or foreclosure, this provision ensures that certain creditors are first in line to receive payment, while others may have to wait or may not receive any payment at all. There are several types of Oregon Subordination Provision, each with its own specific purpose and requirements: 1. First Lien Subordination Provision: This type of provision pertains to loans or mortgages where the lender has the first priority lien on a property. It typically subordinates any subsequent liens or claims against the property, meaning that in case of foreclosure, the first lien holder will be paid first from the proceeds of the sale. 2. Second Lien Subordination Provision: In contrast to the first lien provision, a second lien subordination provision applies when there is already an existing first lien and a subsequent creditor wants to establish a second lien on the same property. This provision acknowledges the priority of the first lien and subordinates the second lien holder's claim to it. 3. Intercreditor Subordination Provision: This type of provision is relevant when there are multiple creditors with different types of liens or security interests on a property. It establishes the priority and rights of these various creditors in case of foreclosure or bankruptcy proceedings. 4. Partial Subordination Provision: Sometimes, certain creditors may voluntarily agree to subordinate a portion of their claims or interests. This allows other creditors to have a higher priority on specific assets or proceeds, providing flexibility in debt repayment agreements. 5. Non-Ordinary Course Subordination Provision: This provision is used in cases where the debt repayment priority needs to be altered due to special circumstances, such as during a restructuring or bankruptcy process. It allows for the temporary or permanent subordination of debts based on specific conditions and agreements between the parties involved. In summary, an Oregon Subordination Provision is a legal mechanism that determines the priority of debt repayment in various financial transactions. Its different types and variations help establish clear guidelines for creditors, ensuring a fair and orderly distribution of proceeds in cases of default, foreclosure, or bankruptcy.
