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.
North Carolina Subordination Provision, also known as Subordination Clause, refers to a contractual agreement that establishes the prioritization of claims or rights among various parties involved in a transaction or financial agreement. This provision outlines the specific order in which creditors or claimants receive payment in the event of default, foreclosure, or bankruptcy. In North Carolina, there are several types of Subordination Provisions that may be encountered, each designed to cater to different scenarios and specific legal requirements. These include: 1. Mortgage Subordination Provision: This provision commonly applies to real estate transactions involving mortgages. It establishes the order of priority among multiple mortgages on a property, determining which lender is entitled to be repaid first in case of default. 2. Lien Subordination Provision: Typically applicable when there are multiple liens on a property, this provision determines the priority of payments when the property is sold or foreclosed upon. It regulates the order in which various lien holders must be paid from the proceeds. 3. Debenture Subordination Provision: In the context of corporate finance and bond issuance, a debenture subordination provision outlines the priority of claims between different classes or tranches of debt securities. It establishes their payment hierarchy, ensuring that certain debenture holders receive repayment before others. 4. Intercreditor Subordination Provision: When multiple lenders are involved in a financing transaction, an intercreditor subordination provision establishes the payment priority and rights of each lender. It governs the relationship between creditors, ensuring that certain creditors are repaid before others. 5. Subordinated Loan Provision: This provision is commonly used when a new lender extends a loan to a borrower who already has existing debt obligations. It stipulates that the new loan will be subordinate to the original obligation, meaning the existing lender must be repaid before the new lender's claim can be settled. In North Carolina, the enforcement and applicability of subordination provisions are subject to state laws and regulations. It is crucial for all parties involved to fully understand these provisions and seek legal advice to ensure compliance and protection of their rights in any transaction or agreement.North Carolina Subordination Provision, also known as Subordination Clause, refers to a contractual agreement that establishes the prioritization of claims or rights among various parties involved in a transaction or financial agreement. This provision outlines the specific order in which creditors or claimants receive payment in the event of default, foreclosure, or bankruptcy. In North Carolina, there are several types of Subordination Provisions that may be encountered, each designed to cater to different scenarios and specific legal requirements. These include: 1. Mortgage Subordination Provision: This provision commonly applies to real estate transactions involving mortgages. It establishes the order of priority among multiple mortgages on a property, determining which lender is entitled to be repaid first in case of default. 2. Lien Subordination Provision: Typically applicable when there are multiple liens on a property, this provision determines the priority of payments when the property is sold or foreclosed upon. It regulates the order in which various lien holders must be paid from the proceeds. 3. Debenture Subordination Provision: In the context of corporate finance and bond issuance, a debenture subordination provision outlines the priority of claims between different classes or tranches of debt securities. It establishes their payment hierarchy, ensuring that certain debenture holders receive repayment before others. 4. Intercreditor Subordination Provision: When multiple lenders are involved in a financing transaction, an intercreditor subordination provision establishes the payment priority and rights of each lender. It governs the relationship between creditors, ensuring that certain creditors are repaid before others. 5. Subordinated Loan Provision: This provision is commonly used when a new lender extends a loan to a borrower who already has existing debt obligations. It stipulates that the new loan will be subordinate to the original obligation, meaning the existing lender must be repaid before the new lender's claim can be settled. In North Carolina, the enforcement and applicability of subordination provisions are subject to state laws and regulations. It is crucial for all parties involved to fully understand these provisions and seek legal advice to ensure compliance and protection of their rights in any transaction or agreement.
