Kansas Subordination of Mortgage / Deed of Trust to Oil and Gas Lease with Bonus and Royalty Payments to Go to Lessor Until Notice from Lienholder

• Category: Oil Gas and Minerals - Subordination
• State: Multi-State
• Control #: US-OG-142
• Format: Word; Rich Text

Description

This form provides for a lienholder to subordinate its lien, created by a mortgage or deed of trust, to an existing oil and gas lease, and directs the bonus and rental payments provided for in the lease to be delivered to the lessor until notified by the lienholder. Kansas Subordination of Mortgage/Deed of Trust to Oil and Gas Lease with Bonus and Royalty Payments to Go to Lessor Until Notice from Lien holder A Subordination of Mortgage/Deed of Trust to Oil and Gas Lease with Bonus and Royalty Payments to Go to Lessor Until Notice from Lien holder is a legal agreement commonly used in Kansas to address the priority of interests between a mortgage or deed of trust and an oil and gas lease. Keywords: Kansas, subordination, mortgage, deed of trust, oil and gas lease, bonus payments, royalty payments, lessor, lien holder. In Kansas, when an individual or entity owns both the surface and mineral rights of a property, they can execute an oil and gas lease to grant a company the right to extract oil and gas resources from the property. However, if there is an existing mortgage or deed of trust on the property, it could take priority over the oil and gas lease. To ensure that the lessor (the owner of the property) receives the bonus and royalty payments from the oil and gas lease until the lien holder (the holder of the mortgage or deed of trust) receives notice, a subordination agreement is often necessary. There are different types of subordination agreements in Kansas that can be used depending on the specific circumstances: 1. Voluntary Subordination Agreement: This type of agreement is entered into willingly by the lien holder, lessor, and lessee (the company receiving the oil and gas rights). It outlines the terms under which the lien holder agrees to subordinate their rights to the oil and gas lease, allowing the lessor to receive bonus and royalty payments until the lien holder receives notice. 2. Involuntary Subordination Agreement: In some cases, if the lien holder refuses to voluntarily subordinate their rights, the lessor may request a court order for involuntary subordination. This typically requires the lessor to prove that the oil and gas lease will result in significant economic benefits to the property, which would then justify subordinating the lien holder's rights. Kansas recognizes the importance of protecting the interests of both the lien holder and the lessor. The subordination agreement helps balance these interests by allowing the lessor to receive the financial benefits from the oil and gas lease until the lien holder is properly notified. It is crucial to consult with an experienced attorney or legal professional in Kansas when preparing a subordination agreement. They can guide you through the specific requirements and ensure that the agreement is legally binding and enforceable. In conclusion, a Kansas Subordination of Mortgage/Deed of Trust to Oil and Gas Lease with Bonus and Royalty Payments to Go to Lessor Until Notice from Lien holder is an essential legal instrument that helps determine the priority of interests between a mortgage or deed of trust and an oil and gas lease. By subordinating the lien holder's rights to the lease, the lessor can receive bonus and royalty payments until the lien holder is duly notified.

Kansas Subordination of Mortgage/Deed of Trust to Oil and Gas Lease with Bonus and Royalty Payments to Go to Lessor Until Notice from Lien holder A Subordination of Mortgage/Deed of Trust to Oil and Gas Lease with Bonus and Royalty Payments to Go to Lessor Until Notice from Lien holder is a legal agreement commonly used in Kansas to address the priority of interests between a mortgage or deed of trust and an oil and gas lease. Keywords: Kansas, subordination, mortgage, deed of trust, oil and gas lease, bonus payments, royalty payments, lessor, lien holder. In Kansas, when an individual or entity owns both the surface and mineral rights of a property, they can execute an oil and gas lease to grant a company the right to extract oil and gas resources from the property. However, if there is an existing mortgage or deed of trust on the property, it could take priority over the oil and gas lease. To ensure that the lessor (the owner of the property) receives the bonus and royalty payments from the oil and gas lease until the lien holder (the holder of the mortgage or deed of trust) receives notice, a subordination agreement is often necessary. There are different types of subordination agreements in Kansas that can be used depending on the specific circumstances: 1. Voluntary Subordination Agreement: This type of agreement is entered into willingly by the lien holder, lessor, and lessee (the company receiving the oil and gas rights). It outlines the terms under which the lien holder agrees to subordinate their rights to the oil and gas lease, allowing the lessor to receive bonus and royalty payments until the lien holder receives notice. 2. Involuntary Subordination Agreement: In some cases, if the lien holder refuses to voluntarily subordinate their rights, the lessor may request a court order for involuntary subordination. This typically requires the lessor to prove that the oil and gas lease will result in significant economic benefits to the property, which would then justify subordinating the lien holder's rights. Kansas recognizes the importance of protecting the interests of both the lien holder and the lessor. The subordination agreement helps balance these interests by allowing the lessor to receive the financial benefits from the oil and gas lease until the lien holder is properly notified. It is crucial to consult with an experienced attorney or legal professional in Kansas when preparing a subordination agreement. They can guide you through the specific requirements and ensure that the agreement is legally binding and enforceable. In conclusion, a Kansas Subordination of Mortgage/Deed of Trust to Oil and Gas Lease with Bonus and Royalty Payments to Go to Lessor Until Notice from Lien holder is an essential legal instrument that helps determine the priority of interests between a mortgage or deed of trust and an oil and gas lease. By subordinating the lien holder's rights to the lease, the lessor can receive bonus and royalty payments until the lien holder is duly notified.