Kansas 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. Kansas Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a legal document that outlines the rights and obligations of various parties involved in a commercial lease agreement in the state of Kansas. It specifically applies to situations where there is a commercial loan on the property. In Kansas, there are primarily two types of Subordination, Non-Disturbance, and Attornment Agreements related to a commercial loan. These are: 1. Recognition Agreement: A Recognition Agreement is a type of SODA that is typically entered into between a lender and a tenant. It recognizes and acknowledges the existence of the lease between the tenant and the landlord, and provides assurance to the tenant that their rights under the lease will be protected even in the event of a default by the landlord. This agreement also establishes that the tenant will attorn to the lender in the event that the lender acquires the property through foreclosure. 2. Lender Agreement: A Lender Agreement is another type of SODA that is commonly used in Kansas. This agreement is primarily between the landlord and the lender, and it binds the lender to honor the terms of the lease in the event of a foreclosure or a change of ownership. It ensures that the tenant's rights and obligations under the lease will be recognized and maintained by the lender, providing a sense of security to the tenant. The Kansas Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan generally includes the following key elements: 1. Subordination: The tenant agrees to subordinate their lease to the lender's mortgage or lien, which means that the lender's interest takes priority over the rights of the tenant. In case of default or foreclosure, the lender's rights come before the tenant's rights. 2. Non-Disturbance: The lender agrees not to disturb the tenant's possession, use, or enjoyment of the premises as long as the tenant meets their obligations under the lease. This clause ensures that the tenant's rights are protected and that they can continue their business operations undisturbed. 3. Attornment: The tenant agrees to recognize and attorn to the lender or any subsequent owner of the property in the event of a foreclosure or transfer of ownership. This means that the tenant accepts the new owner or lender as their landlord and agrees to fulfill their obligations under the lease with them. 4. Notice: The agreement generally includes provisions for providing notice to all parties involved, including the lender, tenant, and landlord, in case of any default or breach of the lease terms. This allows for prompt resolution of any issues that may arise. 5. Governing Law: The SODA will typically specify that it is governed by the laws of the state of Kansas, ensuring that all parties understand and comply with the legal requirements and regulations within the state. It is essential for all parties involved in a commercial lease agreement with a commercial loan to carefully review and negotiate the terms of the Kansas Subordination, Non-Disturbance, and Attornment Agreement to protect their interests and understand their rights and obligations under the lease. Professional legal advice is highly recommended when dealing with complex commercial lease agreements and loan arrangements.

Kansas Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a legal document that outlines the rights and obligations of various parties involved in a commercial lease agreement in the state of Kansas. It specifically applies to situations where there is a commercial loan on the property. In Kansas, there are primarily two types of Subordination, Non-Disturbance, and Attornment Agreements related to a commercial loan. These are: 1. Recognition Agreement: A Recognition Agreement is a type of SODA that is typically entered into between a lender and a tenant. It recognizes and acknowledges the existence of the lease between the tenant and the landlord, and provides assurance to the tenant that their rights under the lease will be protected even in the event of a default by the landlord. This agreement also establishes that the tenant will attorn to the lender in the event that the lender acquires the property through foreclosure. 2. Lender Agreement: A Lender Agreement is another type of SODA that is commonly used in Kansas. This agreement is primarily between the landlord and the lender, and it binds the lender to honor the terms of the lease in the event of a foreclosure or a change of ownership. It ensures that the tenant's rights and obligations under the lease will be recognized and maintained by the lender, providing a sense of security to the tenant. The Kansas Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan generally includes the following key elements: 1. Subordination: The tenant agrees to subordinate their lease to the lender's mortgage or lien, which means that the lender's interest takes priority over the rights of the tenant. In case of default or foreclosure, the lender's rights come before the tenant's rights. 2. Non-Disturbance: The lender agrees not to disturb the tenant's possession, use, or enjoyment of the premises as long as the tenant meets their obligations under the lease. This clause ensures that the tenant's rights are protected and that they can continue their business operations undisturbed. 3. Attornment: The tenant agrees to recognize and attorn to the lender or any subsequent owner of the property in the event of a foreclosure or transfer of ownership. This means that the tenant accepts the new owner or lender as their landlord and agrees to fulfill their obligations under the lease with them. 4. Notice: The agreement generally includes provisions for providing notice to all parties involved, including the lender, tenant, and landlord, in case of any default or breach of the lease terms. This allows for prompt resolution of any issues that may arise. 5. Governing Law: The SODA will typically specify that it is governed by the laws of the state of Kansas, ensuring that all parties understand and comply with the legal requirements and regulations within the state. It is essential for all parties involved in a commercial lease agreement with a commercial loan to carefully review and negotiate the terms of the Kansas Subordination, Non-Disturbance, and Attornment Agreement to protect their interests and understand their rights and obligations under the lease. Professional legal advice is highly recommended when dealing with complex commercial lease agreements and loan arrangements.