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.
The Texas Subordination Provision is a legal clause commonly used in various financial agreements and real estate transactions within the state of Texas. It refers to a contractual provision that places certain obligations or rights of one party lower in priority or subordinate to those of another party. A Texas Subordination Provision can be found in mortgage agreements, lease agreements, loan documents, and other contracts involving debt obligations or property rights. This provision establishes the order in which different parties would be entitled to receive payments or exercise certain rights in the event of default, foreclosure, bankruptcy, or other similar situations. There are several types of Texas Subordination Provisions, each with its own purpose and implications: 1. Mortgage Subordination Provision: This type of provision is commonly seen in property transactions involving multiple mortgages. It determines the priority of repayment if the property is sold, refinanced, or foreclosed. In case of default, the primary mortgage holder would have the right to be paid before the secondary or subordinate mortgage holders. 2. Lease Subordination Provision: In commercial real estate, this provision may be included in lease agreements. It ensures that the landlord's interest in the property takes precedence over any potential claims by lenders or other creditors in case of tenant default. 3. Intercreditor Subordination Provision: This provision is usually found in loan agreements involving multiple lenders. It outlines the order in which lenders can collect their repayments or seize collateral in the event of borrower default or foreclosure. Senior lenders with higher priority will be repaid first before subordinate lenders. 4. Subordination of Lien Provision: This type of provision is commonly used when there are existing property liens or judgments. It reorders the priority of the liens, specifying which lien holder's claim will take precedence in the distribution of funds from the sale of the property. Overall, the Texas Subordination Provision plays a crucial role in defining the rights and priorities of parties involved in financial agreements and property transactions within the state. It aims to establish a fair and transparent framework to handle potential conflicts and ensure efficient distribution of funds or enforcement of rights in various legal scenarios.The Texas Subordination Provision is a legal clause commonly used in various financial agreements and real estate transactions within the state of Texas. It refers to a contractual provision that places certain obligations or rights of one party lower in priority or subordinate to those of another party. A Texas Subordination Provision can be found in mortgage agreements, lease agreements, loan documents, and other contracts involving debt obligations or property rights. This provision establishes the order in which different parties would be entitled to receive payments or exercise certain rights in the event of default, foreclosure, bankruptcy, or other similar situations. There are several types of Texas Subordination Provisions, each with its own purpose and implications: 1. Mortgage Subordination Provision: This type of provision is commonly seen in property transactions involving multiple mortgages. It determines the priority of repayment if the property is sold, refinanced, or foreclosed. In case of default, the primary mortgage holder would have the right to be paid before the secondary or subordinate mortgage holders. 2. Lease Subordination Provision: In commercial real estate, this provision may be included in lease agreements. It ensures that the landlord's interest in the property takes precedence over any potential claims by lenders or other creditors in case of tenant default. 3. Intercreditor Subordination Provision: This provision is usually found in loan agreements involving multiple lenders. It outlines the order in which lenders can collect their repayments or seize collateral in the event of borrower default or foreclosure. Senior lenders with higher priority will be repaid first before subordinate lenders. 4. Subordination of Lien Provision: This type of provision is commonly used when there are existing property liens or judgments. It reorders the priority of the liens, specifying which lien holder's claim will take precedence in the distribution of funds from the sale of the property. Overall, the Texas Subordination Provision plays a crucial role in defining the rights and priorities of parties involved in financial agreements and property transactions within the state. It aims to establish a fair and transparent framework to handle potential conflicts and ensure efficient distribution of funds or enforcement of rights in various legal scenarios.
