Maricopa Arizona 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
• County: Maricopa
• 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. Maricopa Arizona Subordination of Mortgage / Deed of Trust to Oil and Gas Lease with Bonus and Royalty Payments to Go to Lessor Until Notice from Lien holder: A Maricopa Arizona Subordination of Mortgage or Deed of Trust to an Oil and Gas Lease with Bonus and Royalty Payments is a legal agreement that outlines the order of priority between the mortgage or deed of trust on a property and an oil and gas lease. In this arrangement, the owner of the property grants an oil and gas company the right to explore, extract, and develop oil and gas resources on their land. As part of the agreement, the oil and gas company pays the property owner a bonus payment upfront in exchange for the lease. Additionally, the property owner receives royalty payments based on the production or sale of oil and gas from the land. The subordination aspect comes into play when there is an existing mortgage or deed of trust on the property. The property owner must seek consent from the lien holder (typically the mortgage lender) to allow the oil and gas lease to take priority over the mortgage. By subordinating the mortgage, the property owner acknowledges that in case of default or foreclosure, the oil and gas lease will have priority in receiving payment from the proceeds. Until the lien holder provides written notice allowing the subordination, the bonus and royalty payments from the oil and gas lease will be directed to the lessor, i.e., the property owner. Once the notice is received, the payments will be redirected to the lien holder until the mortgage or deed of trust is satisfied. It is important to note that there can be variations or different types of subordination agreements within Maricopa Arizona, specific to different parcels of land or individual circumstances. Some variations may include specific terms regarding the distribution of bonus and royalty payments, notice requirements, or additional clauses to protect the interests of the parties involved. In summary, a Maricopa Arizona Subordination of Mortgage / Deed of Trust to Oil and Gas Lease with Bonus and Royalty Payments to Go to Lessor Until Notice from Lien holder is a legal agreement establishing the order of priority between a mortgage or deed of trust and an oil and gas lease. It ensures that the oil and gas company has a valid interest in the land and grants them priority over mortgage proceeds until notice is provided by the lien holder.

Maricopa Arizona Subordination of Mortgage / Deed of Trust to Oil and Gas Lease with Bonus and Royalty Payments to Go to Lessor Until Notice from Lien holder: A Maricopa Arizona Subordination of Mortgage or Deed of Trust to an Oil and Gas Lease with Bonus and Royalty Payments is a legal agreement that outlines the order of priority between the mortgage or deed of trust on a property and an oil and gas lease. In this arrangement, the owner of the property grants an oil and gas company the right to explore, extract, and develop oil and gas resources on their land. As part of the agreement, the oil and gas company pays the property owner a bonus payment upfront in exchange for the lease. Additionally, the property owner receives royalty payments based on the production or sale of oil and gas from the land. The subordination aspect comes into play when there is an existing mortgage or deed of trust on the property. The property owner must seek consent from the lien holder (typically the mortgage lender) to allow the oil and gas lease to take priority over the mortgage. By subordinating the mortgage, the property owner acknowledges that in case of default or foreclosure, the oil and gas lease will have priority in receiving payment from the proceeds. Until the lien holder provides written notice allowing the subordination, the bonus and royalty payments from the oil and gas lease will be directed to the lessor, i.e., the property owner. Once the notice is received, the payments will be redirected to the lien holder until the mortgage or deed of trust is satisfied. It is important to note that there can be variations or different types of subordination agreements within Maricopa Arizona, specific to different parcels of land or individual circumstances. Some variations may include specific terms regarding the distribution of bonus and royalty payments, notice requirements, or additional clauses to protect the interests of the parties involved. In summary, a Maricopa Arizona Subordination of Mortgage / Deed of Trust to Oil and Gas Lease with Bonus and Royalty Payments to Go to Lessor Until Notice from Lien holder is a legal agreement establishing the order of priority between a mortgage or deed of trust and an oil and gas lease. It ensures that the oil and gas company has a valid interest in the land and grants them priority over mortgage proceeds until notice is provided by the lien holder.