This form is used when Lienholder subordinates all liens created by the (Mortgage/Deed of Trust) to the Lease and releases the leasehold estate created by the Lease from all liens created by the (Mortgage/Deed of Trust) and all extensions and renewals of the liens. Lienholder does not waive or release any of its rights under the (Mortgage/Deed of Trust) on or against any royalty interest reserved by the Lessor.
A Rhode Island Subordination Agreement with Release of Lien as to Leasehold Estate is a legal document that establishes the rights and priorities of various liens on a leasehold estate. It outlines the agreement between the parties involved, wherein a lien holder agrees to subordinate their lien to another lien, allowing the latter to take precedence in the event of a foreclosure or sale. In Rhode Island, there are generally two types of Subordination Agreements with Release of Lien as to Leasehold Estate: general subordination agreements and specific subordination agreements. A general subordination agreement applies to all liens, encumbrances, and mortgages on the leasehold estate. It ensures that a new lien or mortgage will take priority over existing ones, providing clear guidelines for future transactions involving the leased property. On the other hand, a specific subordination agreement is more narrowly focused and applies to a specific lien, encumbrance, or mortgage. It may be used when a party wants to subordinate a particular lien to a new lien, while allowing other existing liens to retain their priority. Key elements typically included in a Rhode Island Subordination Agreement with Release of Lien as to Leasehold Estate are: 1. Identification of the parties involved: This includes the names and contact information of the lien holder, the leasehold estate owner, and any other relevant parties. 2. Description of the leasehold estate: A detailed description of the leased property, including its physical address and legal description, is necessary to establish the subject of the agreement. 3. Description of the lien to be subordinated: The agreement should clearly identify the lien that will be subordinated to another lien or encumbrance. This may include details such as the recording information, date of creation, and outstanding balance of the lien. 4. Terms of subordination: The agreement should outline the terms and conditions under which the lien will be subordinated. This may include provisions for priority changes, foreclosure proceedings, or sale of the leasehold estate. 5. Release of lien: The agreement should also include language pertaining to the release of the lien upon satisfaction of certain conditions, such as full payment or the completion of specific obligations. Rhode Island Subordination Agreements with Release of Lien as to Leasehold Estate serve to protect the interests of all parties involved and offer clarity regarding the priority of liens on a leasehold estate. It is important to consult with an experienced attorney to ensure that the agreement complies with Rhode Island laws and adequately protects the rights and interests of all parties concerned.
