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.
Rhode Island Subordination Provision refers to a legal provision that governs the priority of liens or claims against a property in Rhode Island. It outlines the order in which different parties are entitled to receive payment in case of foreclosure or other debt-related matters. In Rhode Island, there are primarily two types of Subordination Provision: 1. Mortgage Subordination Provision: This type of subordination provision is commonly used in real estate transactions when a property owner borrows money against their property. In such cases, the mortgage subordination provision determines the priority of the mortgage lien in relation to other liens, such as tax liens or mechanic liens. By signing a mortgage subordination provision, a lender agrees to take a lower priority position, allowing another lender to have a higher priority. 2. Subordination of Future Advances Provision: This type of subordination provision is often utilized in construction financing. It allows additional loans or advances to be made in the future while maintaining the original priority of the initial lien. It ensures that the priority of the initial lien is not affected by any future loans, giving the lender adequate protection. Both types of subordination provision play a crucial role in safeguarding the interests of lenders and determining the priority of liens in Rhode Island. They provide legal guidelines for resolving conflicts and determining the order in which claims against a property are addressed, ensuring a fair and structured process. In conclusion, the Rhode Island Subordination Provision is a legal provision that delineates the priority of liens or claims against a property in the state. It includes mortgage subordination provisions and subordination of future advances provisions, offering lender protection and determining the order of payment in foreclosure or debt-related proceedings.
