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.
A Washington Subordination Provision, also known as a subordination clause, is a legal agreement commonly included in loan documents or real estate transactions in the state of Washington. It outlines the priority of different creditors or lien holders in the event of default or foreclosure, protecting the interests of lenders and determining the order in which they will be repaid. The purpose of the Washington Subordination Provision is to establish a hierarchy of claims and ensure that certain debts or liens are given priority over others. This provision helps lenders protect their investment by specifying their rights and position in relation to other lenders or parties involved. There can be different types of Washington Subordination Provisions depending on the nature of the transaction or loan. Some common types include: 1. First Lien Subordination Provision: This type of provision typically applies in cases where there are multiple liens on a property or asset. It ensures that the first lien holder will have priority over subsequent lien holders. In the event of default or foreclosure, the first lien holder will be paid first from the proceeds of the sale. 2. Second Lien Subordination Provision: When there are two competing liens, this provision establishes that the second lien holder is subordinated to the first lien holder. The second lien holder will only be paid after the first lien holder is satisfied in case of default or foreclosure. 3. Subordinate Deed of Trust Provision: In real estate transactions involving mortgages or deeds of trust, this provision allows the lender to subordinate their lien position to another lender's lien. It is often used when a borrower refinances a mortgage and needs to establish a new first lien holder. 4. Intercreditor Subordination Provision: In complex financing arrangements involving multiple lenders, an intercreditor subordination provision is included to clarify the priority of each lender's claims. It outlines the relationship between senior lenders and subordinate lenders, specifying the order of repayment in case of default or liquidation. Overall, a Washington Subordination Provision serves as a crucial legal safeguard for lenders and creditors by establishing a clear order of priority. It ensures that their interests are protected and repayment is made in an organized and fair manner.A Washington Subordination Provision, also known as a subordination clause, is a legal agreement commonly included in loan documents or real estate transactions in the state of Washington. It outlines the priority of different creditors or lien holders in the event of default or foreclosure, protecting the interests of lenders and determining the order in which they will be repaid. The purpose of the Washington Subordination Provision is to establish a hierarchy of claims and ensure that certain debts or liens are given priority over others. This provision helps lenders protect their investment by specifying their rights and position in relation to other lenders or parties involved. There can be different types of Washington Subordination Provisions depending on the nature of the transaction or loan. Some common types include: 1. First Lien Subordination Provision: This type of provision typically applies in cases where there are multiple liens on a property or asset. It ensures that the first lien holder will have priority over subsequent lien holders. In the event of default or foreclosure, the first lien holder will be paid first from the proceeds of the sale. 2. Second Lien Subordination Provision: When there are two competing liens, this provision establishes that the second lien holder is subordinated to the first lien holder. The second lien holder will only be paid after the first lien holder is satisfied in case of default or foreclosure. 3. Subordinate Deed of Trust Provision: In real estate transactions involving mortgages or deeds of trust, this provision allows the lender to subordinate their lien position to another lender's lien. It is often used when a borrower refinances a mortgage and needs to establish a new first lien holder. 4. Intercreditor Subordination Provision: In complex financing arrangements involving multiple lenders, an intercreditor subordination provision is included to clarify the priority of each lender's claims. It outlines the relationship between senior lenders and subordinate lenders, specifying the order of repayment in case of default or liquidation. Overall, a Washington Subordination Provision serves as a crucial legal safeguard for lenders and creditors by establishing a clear order of priority. It ensures that their interests are protected and repayment is made in an organized and fair manner.
