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.
Pennsylvania Subordination Provision, also known as a subordination agreement, is a legal document used in real estate transactions and loan agreements. This provision outlines the priority of liens and helps determine the order in which different creditors will be paid in case of default or foreclosure. In Pennsylvania, there are two main types of subordination provisions: 1. Mortgage Subordination Provision: This type of subordination provision is commonly used in the context of real estate transactions. It allows a property owner to obtain a new loan or mortgage while keeping an existing mortgage in place. The mortgage subordination provision establishes that the new loan will have a higher priority than the existing one. This means that if the property is foreclosed upon, the new lender will be paid off first, and the remaining proceeds, if any, will be used to repay the existing mortgage. 2. Creditor Subordination Provision: This type of subordination provision is typically used in commercial or business loans. It involves the arrangement between a borrower and multiple lenders, where one lender agrees to have its claim on the borrower's assets or collateral placed in a subordinate position to another lender. This ensures that the primary lender has the first right to collect on the debt if the borrower defaults. Often, this provision is used when a business seeks additional financing from new lenders while maintaining existing loan agreements. Keywords: Pennsylvania, subordination provision, subordination agreement, lien priority, real estate transactions, mortgage subordination provision, creditor subordination provision, property owner, new loan, existing mortgage, foreclosure, commercial loans, business loans, borrower, lenders, collateral, financing.
