Nassau New York Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan

• Category: Loans and Lending
• State: Multi-State
• County: Nassau
• 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. A Nassau New York Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a legally binding document that outlines the relationship between a landlord, tenant, and lender in the context of a commercial loan. This agreement is particularly relevant when a tenant leases a property that is subject to a mortgage or other financial encumbrances. In essence, an SODA protects the rights of the tenant in the event of a default by the landlord on the loan. It establishes various terms and conditions that govern the relationship between the lender and the tenant, ensuring that the tenant's lease will not be disturbed by any foreclosure or other legal action taken by the lender against the landlord. Here are the key components of a Nassau New York SODA: 1. Subordination: This clause ensures that the tenant's lease is subordinate to the lender's mortgage or any other encumbrances held by the lender. In other words, the tenant agrees that the lender's rights take precedence over their lease in case of default by the landlord. 2. Non-Disturbance: The non-disturbance clause protects the tenant's rights by ensuring that the lender will not disturb the tenant's possession or enjoyment of the leased premises, even in the event of foreclosure or other legal actions against the landlord. This provision safeguards the tenant's business operations and ensures continuity. 3. Attornment: The attornment clause binds the tenant to recognize the lender as its new landlord if foreclosure or other legal action results in a change of ownership. The tenant agrees to accept the lender as the new landlord and continue paying rent and fulfilling all other lease obligations. There are different variations of SODA agreements that may exist, depending on the specific circumstances and requirements of the parties involved. Some common types include: 1. Unilateral SODA: This type involves only the tenant and the lender. It is often used when the landlord is not actively involved or unwilling to sign the agreement. 2. Bilateral SODA: In this case, all three parties — landlord, tenant, and lende— – are involved in signing the agreement. This type provides the highest level of protection and agreement between all parties. It is important to note that the exact terms and provisions of an SODA may vary depending on the parties involved and the specific language used in the agreement. It is crucial for all parties to carefully review and negotiate the terms to ensure their rights and interests are adequately protected. Seeking legal advice is recommended to fully understand the implications of signing an SODA within the context of Nassau New York commercial leases and loans.

A Nassau New York Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a legally binding document that outlines the relationship between a landlord, tenant, and lender in the context of a commercial loan. This agreement is particularly relevant when a tenant leases a property that is subject to a mortgage or other financial encumbrances. In essence, an SODA protects the rights of the tenant in the event of a default by the landlord on the loan. It establishes various terms and conditions that govern the relationship between the lender and the tenant, ensuring that the tenant's lease will not be disturbed by any foreclosure or other legal action taken by the lender against the landlord. Here are the key components of a Nassau New York SODA: 1. Subordination: This clause ensures that the tenant's lease is subordinate to the lender's mortgage or any other encumbrances held by the lender. In other words, the tenant agrees that the lender's rights take precedence over their lease in case of default by the landlord. 2. Non-Disturbance: The non-disturbance clause protects the tenant's rights by ensuring that the lender will not disturb the tenant's possession or enjoyment of the leased premises, even in the event of foreclosure or other legal actions against the landlord. This provision safeguards the tenant's business operations and ensures continuity. 3. Attornment: The attornment clause binds the tenant to recognize the lender as its new landlord if foreclosure or other legal action results in a change of ownership. The tenant agrees to accept the lender as the new landlord and continue paying rent and fulfilling all other lease obligations. There are different variations of SODA agreements that may exist, depending on the specific circumstances and requirements of the parties involved. Some common types include: 1. Unilateral SODA: This type involves only the tenant and the lender. It is often used when the landlord is not actively involved or unwilling to sign the agreement. 2. Bilateral SODA: In this case, all three parties — landlord, tenant, and lende— – are involved in signing the agreement. This type provides the highest level of protection and agreement between all parties. It is important to note that the exact terms and provisions of an SODA may vary depending on the parties involved and the specific language used in the agreement. It is crucial for all parties to carefully review and negotiate the terms to ensure their rights and interests are adequately protected. Seeking legal advice is recommended to fully understand the implications of signing an SODA within the context of Nassau New York commercial leases and loans.