This office lease guaranty states that until all obligations of the tenant are fully performed and the lease has expired or terminated, all claims that the guarantor may have against the tenant are subordinated to the landlord's claims against the tenant.
Mecklenburg County in North Carolina is a region known for its thriving business community and attractive real estate opportunities. Within the realm of commercial leasing, one important aspect to consider is the Subordination and Deferral of the Guarantor's Claims Against the Tenant. This clause specifies the priority of claims between the guarantor and the tenant in case of any default or bankruptcy proceedings. In Mecklenburg County, there are two commonly used types of Subordination and Deferral clauses: Non-Disturbance Agreement and Subordination, Non-Disturbance, and Attornment Agreement (SODA). 1. Non-Disturbance Agreement (NDA): A Non-Disturbance Agreement ensures that the guarantor's claims against the tenant are subordinate to the interests of the landlord and any existing and future mortgage lenders. This means that in the event of default or foreclosure, the landlord and mortgage lenders have priority over the guarantor's claims. The agreement typically includes provisions that the guarantor will not disturb any proceedings initiated by the landlord or mortgage lender against the tenant. 2. Subordination, Non-Disturbance, and Attornment Agreement (SODA): The SODA encompasses all provisions of a Non-Disturbance Agreement but further includes the tenant's attornment clause. This clause obligates the tenant to recognize and attorn to a new owner or landlord if the leased property undergoes a change in ownership (e.g., foreclosure or sale). By attorning, the tenant agrees to maintain the lease and continue to make rental payments to the new owner or landlord, ensuring continuity of the lease obligations. The purpose of Subordination and Deferral agreements is to safeguard the interests of the landlord or mortgage lender by subordinating the guarantor's claims against the tenant. These agreements are crucial for lenders since they help maintain the value and marketability of the leased property, making it easier to secure financing for the landlord. In summary, Mecklenburg County in North Carolina offers the option to include either a Non-Disturbance Agreement (NDA) or a Subordination, Non-Disturbance, and Attornment Agreement (SODA) in commercial leases. These agreements protect the interests of the landlord and mortgage lenders, ensuring priority of claims in case of default or foreclosure. Such clauses provide stability and confidence to the real estate market while facilitating successful leasing and financing transactions for both landlords and tenants.Mecklenburg County in North Carolina is a region known for its thriving business community and attractive real estate opportunities. Within the realm of commercial leasing, one important aspect to consider is the Subordination and Deferral of the Guarantor's Claims Against the Tenant. This clause specifies the priority of claims between the guarantor and the tenant in case of any default or bankruptcy proceedings. In Mecklenburg County, there are two commonly used types of Subordination and Deferral clauses: Non-Disturbance Agreement and Subordination, Non-Disturbance, and Attornment Agreement (SODA). 1. Non-Disturbance Agreement (NDA): A Non-Disturbance Agreement ensures that the guarantor's claims against the tenant are subordinate to the interests of the landlord and any existing and future mortgage lenders. This means that in the event of default or foreclosure, the landlord and mortgage lenders have priority over the guarantor's claims. The agreement typically includes provisions that the guarantor will not disturb any proceedings initiated by the landlord or mortgage lender against the tenant. 2. Subordination, Non-Disturbance, and Attornment Agreement (SODA): The SODA encompasses all provisions of a Non-Disturbance Agreement but further includes the tenant's attornment clause. This clause obligates the tenant to recognize and attorn to a new owner or landlord if the leased property undergoes a change in ownership (e.g., foreclosure or sale). By attorning, the tenant agrees to maintain the lease and continue to make rental payments to the new owner or landlord, ensuring continuity of the lease obligations. The purpose of Subordination and Deferral agreements is to safeguard the interests of the landlord or mortgage lender by subordinating the guarantor's claims against the tenant. These agreements are crucial for lenders since they help maintain the value and marketability of the leased property, making it easier to secure financing for the landlord. In summary, Mecklenburg County in North Carolina offers the option to include either a Non-Disturbance Agreement (NDA) or a Subordination, Non-Disturbance, and Attornment Agreement (SODA) in commercial leases. These agreements protect the interests of the landlord and mortgage lenders, ensuring priority of claims in case of default or foreclosure. Such clauses provide stability and confidence to the real estate market while facilitating successful leasing and financing transactions for both landlords and tenants.
