This office lease form is a more detailed, more complicated subordination provision stating that subordination is conditioned on the landlord providing the tenant with a satisfactory non-disturbance agreement.
Michigan Detailed Subordination Provision refers to a specific provision within a legal document that outlines the hierarchy of lien priority among multiple creditors in the state of Michigan. This provision is commonly included in loan agreements, mortgages, and other financial documents to establish the order in which creditors will be paid in case of default or bankruptcy. The purpose of a Michigan Detailed Subordination Provision is to clarify the relative priority of different liens or claims against a particular property or asset. By explicitly defining this priority, it helps reduce ambiguity and ensures a fair distribution of proceeds among creditors in case of insolvency. Several types of Michigan Detailed Subordination Provisions exist, each addressing different aspects of lien priority: 1. First Lien Subordination Provision: This provision establishes that a specific lien holds the highest priority over all other liens. It means this particular creditor will be the first to be repaid before others in case of default. 2. Second Lien Subordination Provision: This provision establishes that a specific lien holds the second-highest priority, meaning it will be repaid after the first lien holder, but before any subsequent liens. 3. Subordinate Lien Provision: This provision states that a particular creditor's lien is subordinate to all other liens, meaning they will be repaid only after all higher-priority lien holders have been satisfied. 4. Partial Subordination Provision: This provision allows for a partial subordination of liens, where certain creditors receive priority only up to a specified amount or percentage of the total claim, while others retain their original priority position. The Michigan Detailed Subordination Provision is essential for lenders to have a clear understanding of their position in the event of default or bankruptcy. Creditors must carefully review and negotiate the terms of this provision to protect their interests and ensure a fair distribution of assets. It is recommended to consult a skilled attorney or legal expert for drafting or analyzing such provisions to ensure compliance with Michigan state laws and regulations.
