The act or process by which a person's rights or claims are ranked after those of others; e.g. a second mortgagee's rights are subordinate to those of the first mortgagee.
The use of dependent structures (phrases, subordinate clauses) that are lower in grammatical rank than independent ones (simple sentences, main clauses).
An agreement to give priority to a right over another right.
The act of a creditor acknowledging in writing that the lien of the debt due from a debtor shall be inferior to the lien of the debt due another creditor from the same debtor.
the semantic relation of being subordinate or belonging to a lower rank or class
When a mortgagee or trust deed beneficiary agrees to accept lower lien priority than he or she is entitled to, allowing a lender with a lien recorded later to have higher priority.
To make a claim to real property inferior to that of another by specific agreement.
the amount of losses a portfolio has to experience before a tranche suffers any loss or the placing of one tranche below another in priority of payment
Deals with the priority of payment of notes payable to creditors. It is common, for example, to see "Notes Payable Officers" in a corporation's liabilities. The bank may wish to strengthen its loan to this corporation by placing it in a preferred position of repayment to "Notes Payable Officers." To do so, it will request the Officers to subordinate repayment of their notes to the Bank's.
An agreement or arrangement regarding two obligations owed by a debtor. When the two obligations would otherwise be of equal rank, the agreement or arrangement gives one obligation priority in payment over the other obligation, which is subordinated.
A legal process where the holder of a lien (mortgage, deed of trust, etc.) agrees to have their claim to a property become inferior (subordinate) to someone else's claim.
An agreement to let an inferior lien (one filed later in time) take precedence (be considered as if it were in a superior position). It is not an uncommon for a lender considering a loan request for a large mortgage (particularly one that will refinance a first mortgage) to require that a second mortgage already in place remain, in effect, in second position through the use of a subordination agreement.
The act or process by which a person's rights are ranked below the rights of others.
The act of making an existing loan secondary or junior to another lien or loan.
Agreement - An agreement by which one encumbrance (for example, a mortgage or deed of trust) is made subject to another encumbrance (for example, a new mortgage or deed of trust; or perhaps a lease) To "subordinate" is to "make subject to", or to make of lower priority.
If you are refinancing your first mortgage and have an existing second or home equity line, one option is to "subordinate" the second mortgage: request that your second mortgage holder go back into the second lien position when you replace your existing first mortgage with the new refinance loan.
The acceptance of a lower priority in payment in the event of liquidation. Also, the agreement to give up other rights and privileges to somebody else.
The act of a creditor acknowledging in writing that a debt due him or her by a debtor shall be inferior to the debt due another creditor by the same debtor.
Giving a lien or interest an inferior status. For example, an existing mortgage may be subordinated to the lien of a new construction loan mortgage in which case the construction loan mortgage becomes the lien with priority.
The process by which a lien holder agrees to permit his lien to become junior or "subordinate" to another lien.
The act of a party acknowledging by written record that a debt is inferior to the interest of another in the same property. Subordination may apply not only to mortgages, but also to leases, real estate rights, and any other types of debt instrument.
The act on the part of a lender or a landowner in the case of a leasehold mortgage, acknowledging by written recorded instrument that an existing loan or interest can be placed in an inferior position to a new loan secured by the same collateral.
A loan in a lower priority, for example a second mortgage is subordinate to a first.
(1) A clause sometimes inserted in the terms of a share issue whereby the rights of the shareholders rank after the rights of some, or all, unsecured creditors of the borrower in the event of his Liquidation.(2) A provision in a bond’s issue whereby, in the event of a new bond issue, the new lenders' claims are subordinated to the claims of the existing bondholders. Français: Subordination Español: Subordinación
A written document whereby the holder of one lien subordinates that lien (causes it to become legally inferior) to the lien or interest of another. This document is usually recorded with the Register of Deeds Office.
Subordination means that the indebtedness in question ranks for repayment behind both secured creditors and unsecured trade creditors.
To be subject to the orders or direction of another; of lower rank.
A loan with a lower priority than another, e.g. a second mortgage lien is subordinate to a first mortgage lien.
The process by which a person or entity's claims are ranked below the claims of another party. In a lease transaction, the claims of a tenant against a landlord are often ranked below those of a mortgagee or a ground lessor; however, certain larger tenants will require subordination from a mortgagee or ground lessor. While subordination language is included in most leases, some leases obligate a landlord to obtain a 'Subordination, Non-Disturbance and Attornment Agreement', whereby either the tenant or the mortgagee/ground lessor will formally agree to subordinate their claims to those of the other party. EXAMPLE: ABC Industrial Tenant's lease contains a right to purchase the building for which they occupy 100% of the rentable area for a price of $2,500,000. The lease also contains a clause requiring ABC to subordinate their lease to any existing or future mortgages, and makes no mention of non-disturbance rights. Lender One forecloses on their $2,750,000 first mortgage. Because ABC's lease is subordinate to the first mortgage and ABC has a purchase option for a price which is less than the loan amount, Lender One elects to eliminate ABC Industrial Tenant's lease.
The act of a party acknowledging, by written recorded instrument, that a mortgage debt or other interest is inferior to the interest of another in the same property.
Moving to a lower priority, as a lien would if it changes from a first mortgage to a second mortgage.
