Hawaii Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan

• Category: Loans and Lending
• State: Multi-State
• Control #: US-1176BG
• Format: Word; Rich Text

Description

The main purpose of this document is to subordinate the lease to the deed of trust or mortgage (if applicable), and have the tenant agree to be bound by the lease to a new owner in the event of foreclosure. Hawaii Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a legal document associated with commercial loans and leases in the state of Hawaii. It clarifies the relationship between three parties: the lender providing the commercial loan, the landlord who owns the property, and the tenant who operates a business on the leased premises. A Subordination, Non-Disturbance, and Attornment Agreement is often required by lenders to protect their interests in case of default or foreclosure. In such scenarios, the SODA establishes how the lease rights of the tenant will be treated and defines the priorities among the lender, landlord, and tenant. Types of Hawaii Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan: 1. Subordination: This clause ensures that the lender's rights take precedence over the tenant's lease rights. In the event of foreclosure, the tenant agrees that their lease will be considered subordinate to the lender's mortgage, allowing the lender to foreclose without terminating the tenant's lease. This provision gives the lender the ability to sell the property to a new owner who will honor the existing lease. 2. Non-Disturbance: The non-disturbance clause assures the tenant that if the landlord faces foreclosure or change in ownership, the lender will not disturb their rights as long as the tenant meets all lease obligations. It protects the tenant from abrupt eviction or lease termination due to the landlord's default. 3. Attornment: The attornment provision requires the tenant to acknowledge the lender as the new landlord if they acquire the property through foreclosure or any other legal means. The tenant agrees to recognize and maintain the terms of the lease with the new lender-turned-landlord. This ensures continuity of the tenant's occupancy and business operations, even under new ownership. It is important to note that the specific content and clauses in a Hawaii Subordination, Non-Disturbance, and Attornment Agreement may vary depending on the terms negotiated by the parties involved and the specific requirements of the lender. These agreements are crucial to protect the interests of all parties and provide stability during potential changes in property ownership or loan situations. Keywords: Hawaii, Subordination, Non-Disturbance, Attornment Agreement, Lease, Commercial Loan, Foreclosure, Mortgage, Landlord, Tenant, Subordination Clause, Non-Disturbance Clause, Attornment Clause, Owner Default, Legal Document, Loan Agreement.

Hawaii Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a legal document associated with commercial loans and leases in the state of Hawaii. It clarifies the relationship between three parties: the lender providing the commercial loan, the landlord who owns the property, and the tenant who operates a business on the leased premises. A Subordination, Non-Disturbance, and Attornment Agreement is often required by lenders to protect their interests in case of default or foreclosure. In such scenarios, the SODA establishes how the lease rights of the tenant will be treated and defines the priorities among the lender, landlord, and tenant. Types of Hawaii Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan: 1. Subordination: This clause ensures that the lender's rights take precedence over the tenant's lease rights. In the event of foreclosure, the tenant agrees that their lease will be considered subordinate to the lender's mortgage, allowing the lender to foreclose without terminating the tenant's lease. This provision gives the lender the ability to sell the property to a new owner who will honor the existing lease. 2. Non-Disturbance: The non-disturbance clause assures the tenant that if the landlord faces foreclosure or change in ownership, the lender will not disturb their rights as long as the tenant meets all lease obligations. It protects the tenant from abrupt eviction or lease termination due to the landlord's default. 3. Attornment: The attornment provision requires the tenant to acknowledge the lender as the new landlord if they acquire the property through foreclosure or any other legal means. The tenant agrees to recognize and maintain the terms of the lease with the new lender-turned-landlord. This ensures continuity of the tenant's occupancy and business operations, even under new ownership. It is important to note that the specific content and clauses in a Hawaii Subordination, Non-Disturbance, and Attornment Agreement may vary depending on the terms negotiated by the parties involved and the specific requirements of the lender. These agreements are crucial to protect the interests of all parties and provide stability during potential changes in property ownership or loan situations. Keywords: Hawaii, Subordination, Non-Disturbance, Attornment Agreement, Lease, Commercial Loan, Foreclosure, Mortgage, Landlord, Tenant, Subordination Clause, Non-Disturbance Clause, Attornment Clause, Owner Default, Legal Document, Loan Agreement.