Welcome to MOTIFS, where I follow cultural and literary images found in the Bible in an attempt to unearth God's meaning in His pattern of usage.


Subordination agreements are the most common in the mortgage industry. If a person borrows a second mortgage, that second mortgage has less priority than the first mortgage, but these priorities can be disrupted by refinancing the original loan. Attornment is a vestige of feudal law if the law considered the relationship between landlord and tenant to be personal. Attornment is the tenant`s agreement to become a tenant of a person other than the original lessor, who has now taken possession of the property. An Ohio case from 1939 applied this doctrine to exempt a tenant from the obligation to pay rent to his landlord`s lender after the mortgage had been enforced, because the tenant had never withdrawn. New York Life Ins. Co. v. Simplex Products Corp., (1939) 135 Ohio St. 501, 21 N.E.2d 585. If you`re a lender, you have just as many reasons to want an SNDA.

Depending on when the lease was signed and what the lease says, the mortgage may not give you a first full pledge on the property. Although the lease provides that the tenant`s rights are subordinated to all current and future mortgages, this subordination often depends on the tenant being provided with an SNDA acceptable to the lender. And if the lender eventually takes over the property, many NDSs provide that the lender is not responsible for certain past or future obligations of the owner. A subordination agreement is a legal document that establishes that one debt is ranked behind another in priority for the recovery of a debtor`s repayment. Debt priority can become extremely important when a debtor is in arrears with payments or goes bankrupt. A subordination agreement recognizes that one party`s claim or interest is greater than that of another party if the borrower`s assets must be liquidated to repay the debt. . . .

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