Nebraska 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. Nebraska Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a legal document executed between a commercial lender, tenant, and landlord to establish clarity and protect the rights and interests of all parties involved in a commercial lease when a loan is secured on the property. This agreement is crucial in situations where the landlord defaults on their loan, ensuring that the tenant's rights and leasehold interests are preserved. While there may not be different types of Nebraska SODA, the agreement typically covers the following key components: 1. Subordination: This clause outlines that the tenant's leasehold interest is subject to the lender's mortgage or deed of trust. By subordinating the lease to the lender's lien, the tenant acknowledges that in the event of foreclosure, the lender's interest takes precedence, potentially terminating the lease. This clause protects the lender's security interest in the property. 2. Non-Disturbance: The non-disturbance provision assures tenants that, in the event of default by the landlord, the lender will not disturb their rights and leasehold interest, provided the tenant is not in default under the terms of the lease. It offers security, preventing the lender from simply terminating the lease or evicting the tenant. 3. Attornment: The attornment provision states that, in the event of foreclosure or transfer of the property to a new owner, the tenant will recognize and accept the new owner or lender as their landlord. This clause protects the lender's interests by ensuring continuity of lease payments and tenancy, even under different ownership. The Nebraska SODA agreement specifies the conditions under which these provisions become active and offers protection for all parties involved. It is essential for tenants to review and negotiate the terms of the SODA to safeguard their leasehold interests in case of default by the landlord. Keywords: Nebraska Subordination, Non-Disturbance, and Attornment Agreement, SODA, commercial loan, commercial lease, lender, tenant, landlord, foreclosure, leasehold interests, mortgage, deed of trust, default, security interest, non-disturbance provision, attornment provision, tenancy, ownership.

Nebraska Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a legal document executed between a commercial lender, tenant, and landlord to establish clarity and protect the rights and interests of all parties involved in a commercial lease when a loan is secured on the property. This agreement is crucial in situations where the landlord defaults on their loan, ensuring that the tenant's rights and leasehold interests are preserved. While there may not be different types of Nebraska SODA, the agreement typically covers the following key components: 1. Subordination: This clause outlines that the tenant's leasehold interest is subject to the lender's mortgage or deed of trust. By subordinating the lease to the lender's lien, the tenant acknowledges that in the event of foreclosure, the lender's interest takes precedence, potentially terminating the lease. This clause protects the lender's security interest in the property. 2. Non-Disturbance: The non-disturbance provision assures tenants that, in the event of default by the landlord, the lender will not disturb their rights and leasehold interest, provided the tenant is not in default under the terms of the lease. It offers security, preventing the lender from simply terminating the lease or evicting the tenant. 3. Attornment: The attornment provision states that, in the event of foreclosure or transfer of the property to a new owner, the tenant will recognize and accept the new owner or lender as their landlord. This clause protects the lender's interests by ensuring continuity of lease payments and tenancy, even under different ownership. The Nebraska SODA agreement specifies the conditions under which these provisions become active and offers protection for all parties involved. It is essential for tenants to review and negotiate the terms of the SODA to safeguard their leasehold interests in case of default by the landlord. Keywords: Nebraska Subordination, Non-Disturbance, and Attornment Agreement, SODA, commercial loan, commercial lease, lender, tenant, landlord, foreclosure, leasehold interests, mortgage, deed of trust, default, security interest, non-disturbance provision, attornment provision, tenancy, ownership.