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.
Illinois Subordination Provision is a legal term often used in real estate transactions or loan agreements. It refers to a clause that outlines the priority or ranking of different liens or claims on a property in Illinois. This provision determines the order in which creditors would be paid in the event of foreclosure or a sale of the property. The purpose of an Illinois Subordination Provision is to establish the priority of various debts or liens on a property, ensuring that each party's respective interests are protected. It clarifies the order in which different lenders or creditors are entitled to receive payment from the proceeds of a foreclosure or sale, based on their priority level. There are different types of Illinois Subordination Provisions that may be included in various agreements. These include: 1. Senior/Subordinate: In this type of provision, a senior lien or debt holder has a higher priority or ranking over a subordinate lien or debt holder. The senior lien gets paid first from the proceeds, while the subordinate lien gets paid once the senior lien is satisfied. 2. Intercreditor/Subordination: This provision is commonly used in situations where a borrower has multiple loans from different lenders. It establishes the priority between different creditors and their respective claims. The provision may state that one creditor's lien is subordinate to another creditor's lien, ensuring that each lender knows their ranking in the payment order. 3. First Lien/Second Lien: This type of provision is typically used in mortgage agreements. It establishes the priority between the first mortgage lender and any subsequent lenders who provide a second mortgage or additional financing. In case of default, the first mortgage lender is entitled to repayment before the second mortgage lender is considered. 4. Cross-Collateralized/Subordinated: This provision is commonly found in loan agreements where multiple properties or assets are used as collateral. It stipulates that the lender's interest is cross-collateralized, meaning that the lender has a claim on all the properties involved. Additionally, it may specify the subordination of certain liens or claims on individual properties, ensuring the lender's priority ranking across all collateral. Overall, the Illinois Subordination Provision is a crucial component of various financial agreements, providing clarity and protection for both borrowers and lenders. It establishes the order of payment priority, ensuring that each party's interests are appropriately addressed and protected in the event of default, foreclosure, or sale.Illinois Subordination Provision is a legal term often used in real estate transactions or loan agreements. It refers to a clause that outlines the priority or ranking of different liens or claims on a property in Illinois. This provision determines the order in which creditors would be paid in the event of foreclosure or a sale of the property. The purpose of an Illinois Subordination Provision is to establish the priority of various debts or liens on a property, ensuring that each party's respective interests are protected. It clarifies the order in which different lenders or creditors are entitled to receive payment from the proceeds of a foreclosure or sale, based on their priority level. There are different types of Illinois Subordination Provisions that may be included in various agreements. These include: 1. Senior/Subordinate: In this type of provision, a senior lien or debt holder has a higher priority or ranking over a subordinate lien or debt holder. The senior lien gets paid first from the proceeds, while the subordinate lien gets paid once the senior lien is satisfied. 2. Intercreditor/Subordination: This provision is commonly used in situations where a borrower has multiple loans from different lenders. It establishes the priority between different creditors and their respective claims. The provision may state that one creditor's lien is subordinate to another creditor's lien, ensuring that each lender knows their ranking in the payment order. 3. First Lien/Second Lien: This type of provision is typically used in mortgage agreements. It establishes the priority between the first mortgage lender and any subsequent lenders who provide a second mortgage or additional financing. In case of default, the first mortgage lender is entitled to repayment before the second mortgage lender is considered. 4. Cross-Collateralized/Subordinated: This provision is commonly found in loan agreements where multiple properties or assets are used as collateral. It stipulates that the lender's interest is cross-collateralized, meaning that the lender has a claim on all the properties involved. Additionally, it may specify the subordination of certain liens or claims on individual properties, ensuring the lender's priority ranking across all collateral. Overall, the Illinois Subordination Provision is a crucial component of various financial agreements, providing clarity and protection for both borrowers and lenders. It establishes the order of payment priority, ensuring that each party's interests are appropriately addressed and protected in the event of default, foreclosure, or sale.
