Title: Understanding Pennsylvania Subordination, Non-Disturbance, and Attornment Agreement of a Commercial Lease in relation to a Commercial Loan Keywords: Pennsylvania subordination agreement, non-disturbance agreement, attornment agreement, commercial lease, commercial loan Introduction: In Pennsylvania, the Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a legal document that establishes the priority of rights between a commercial lease and a commercial loan. SODA agreements are crucial in situations where a tenant's lease might be at risk due to default on the landlord's loan. This article explores the key elements of Pennsylvania SODA agreements and highlights different types within this context. 1. Pennsylvania Subordination Agreement: The subordination aspect of Pennsylvania SODA refers to the priority of rights between the lender and the tenant. It establishes that the lender's interests take precedence over those of the tenant in case of foreclosure or default on the landlord's loan. By signing this agreement, the tenant consents to subordinate their leasehold interest to the lender's mortgage, ensuring that the lender can enforce their rights without interference from the tenant. 2. Pennsylvania Non-Disturbance Agreement: The non-disturbance component of Pennsylvania SODA is designed to protect the rights of the tenant from being disrupted due to actions taken by the lender. This agreement ensures that, despite any changes in ownership or foreclosure proceedings, the tenant's rights under the lease will be recognized and respected by the new owner or lender. By providing a non-disturbance clause, tenants have assurance that they can continue operating their business undisturbed under the terms of their lease. 3. Pennsylvania Attornment Agreement: The attornment element of Pennsylvania SODA establishes a legal requirement for the tenant to recognize and acknowledge the new owner or lender as their landlord, should ownership of the property change due to foreclosure or any other event. By signing this agreement, tenants agree to attorn to the new party and continue fulfilling the terms and conditions of their lease. This allows the lender or new owner to step into the landlord's shoes and enforce the lease agreement. Types of Pennsylvania SODA agreements: a) Basic Pennsylvania SODA Agreement: This refers to the standard form of SODA in Pennsylvania, encompassing the key elements mentioned above. It outlines the rights and obligations of the tenant, landlord, and lender in the case of foreclosure or default on the commercial loan. b) Limited Pennsylvania SODA Agreement: Sometimes, specific provisions or limitations may be added based on the individual circumstances of a lease or loan agreement. A limited SODA may omit certain clauses or modify them to better suit the unique needs of the parties involved. c) Pennsylvania SODA Agreement with Additional Parties: In certain cases, additional parties, such as lease guarantors or subtenants, can be included in the SODA to establish their rights and obligations. This extended agreement ensures comprehensive protection for all parties involved, avoiding potential conflicts and ensuring smooth operations. Conclusion: Pennsylvania Subordination, Non-Disturbance, and Attornment Agreements are critical documents that protect tenants' rights in the event of property foreclosure or default on a commercial loan. By understanding the different types of Pennsylvania SODA agreements and their key components, tenants, lenders, and landlords can ensure their interests are safeguarded throughout the lease term, providing stability and security for all parties involved.