Tennessee 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. Tennessee Subordination of Mortgage / Deed of Trust to Oil and Gas Lease In Tennessee, when an oil and gas lease is granted on a property that has an existing mortgage or deed of trust, a subordination agreement may be required. This agreement acts as a legal document that prioritizes the rights of the lessor (landowner) over those of the lien holder (mortgage lender) regarding bonus and royalty payments until the lien holder provides notice. The subordination agreement ensures that the lessor receives the full benefit of any bonus or royalty payments associated with the oil and gas lease, without interference from the lien holder. Until the lien holder provides written notice, the payments will go directly to the lessor. There are several types of Tennessee Subordination of Mortgage / Deed of Trust to Oil and Gas Lease: 1. Standard Subordination: This is the most common type of subordination agreement. It outlines the terms and conditions under which the lessor will receive bonus and royalty payments until notice from the lien holder is given. 2. Partial Subordination: In some cases, the parties involved may agree to a partial subordination of the mortgage or deed of trust. This means that only a portion of the bonus and royalty payments will go to the lessor until the lien holder provides notice. 3. Temporary Subordination: This type of subordination agreement may be used when the lien holder grants temporary priority to the lessor over bonus and royalty payments for a specific period. Once the specified time elapses or the condition is met, the lien holder regains priority. 4. Reverse Subordination: In rare cases, the lessor may agree to reverse the order of priority, giving the lien holder the first claim to the bonus and royalty payments until notice or a specified condition occurs. It is essential for all parties involved in a Tennessee Subordination of Mortgage / Deed of Trust to Oil and Gas Lease to understand the terms and ramifications of the agreement fully. Seeking professional legal advice is highly recommended ensuring compliance with Tennessee state laws and protect the interests of both the lessor and the lien holder.

Tennessee Subordination of Mortgage / Deed of Trust to Oil and Gas Lease In Tennessee, when an oil and gas lease is granted on a property that has an existing mortgage or deed of trust, a subordination agreement may be required. This agreement acts as a legal document that prioritizes the rights of the lessor (landowner) over those of the lien holder (mortgage lender) regarding bonus and royalty payments until the lien holder provides notice. The subordination agreement ensures that the lessor receives the full benefit of any bonus or royalty payments associated with the oil and gas lease, without interference from the lien holder. Until the lien holder provides written notice, the payments will go directly to the lessor. There are several types of Tennessee Subordination of Mortgage / Deed of Trust to Oil and Gas Lease: 1. Standard Subordination: This is the most common type of subordination agreement. It outlines the terms and conditions under which the lessor will receive bonus and royalty payments until notice from the lien holder is given. 2. Partial Subordination: In some cases, the parties involved may agree to a partial subordination of the mortgage or deed of trust. This means that only a portion of the bonus and royalty payments will go to the lessor until the lien holder provides notice. 3. Temporary Subordination: This type of subordination agreement may be used when the lien holder grants temporary priority to the lessor over bonus and royalty payments for a specific period. Once the specified time elapses or the condition is met, the lien holder regains priority. 4. Reverse Subordination: In rare cases, the lessor may agree to reverse the order of priority, giving the lien holder the first claim to the bonus and royalty payments until notice or a specified condition occurs. It is essential for all parties involved in a Tennessee Subordination of Mortgage / Deed of Trust to Oil and Gas Lease to understand the terms and ramifications of the agreement fully. Seeking professional legal advice is highly recommended ensuring compliance with Tennessee state laws and protect the interests of both the lessor and the lien holder.