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Form #1331

Lease subordinated to mortgage

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Lease subordinated to mortgage

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Lease subordinated to mortgage.

This agreement, made this _________ day of _________[year], between _________, a national banking association, not personally but as trustee under the provisions of a deed or deeds in trust duly recorded and delivered to said bank in pursuance of a trust agreement dated _________ and known as trust number _________, of _________, designated as bank, _________ Corporation, with offices at _________, designated as lessee, and _________ Corporation, with offices at _________, designated as creditor.

Bank is the owner in fee of real estate in _________, and known as: _________(describe).

Lessee is now the owner and holder of a certain lease of a portion of the premises, as by reference to the lease will appear, made by the predecessor in interest of bank bearing the date _________.

Creditor is about to loan to bank the sum of $_____, to be secured by a mortgage covering the premises mentioned, bearing the date of _________, to be executed and delivered by bank to creditor, on condition that the lease be subordinated to the mortgage.

In consideration of the premises and to induce creditor to make the loan, bank and lessee covenant, consent and agree, to and with creditor, that the lease shall be and it is made subject and subordinate in each and every respect to the lien of the mortgage and any renewals.

Bank and creditor, further agree that if at any time during the existence of the first mortgage the working capital of the tenant (lessee) declines below the amount of $_____, it shall constitute a default by bank in the trust deed securing the first mortgage, giving creditor the right to declare the entire loan due and payable. Lessee consents to make this agreement provided that in no event shall it be deemed to create any rights in creditor which would permit lessee's term created in the lease to be cancelled or lessee to be dispossessed so long as it continues to maintain the rental payments provided by the lease nor shall creditor have any rights against lessee as a result of any failure to maintain the minimum working capital.

This agreement shall be binding upon and enure to the benefit of the successors and assigns, of the parties.

In witness, etc.



 
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Total Forms Contributed 69
 

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Terms Of Use

Submissions to this site, including any legal or business forms, posts, responses to questions or other communications by contributors are not intended as and should not be construed as legal advice. You are strongly encouraged to consult competent legal council before engaging in any action based upon content contained on this site.

These downloadable forms are only for personal use. Retransmission, redistribution, or any other commercial use is prohibited. This includes reposting forms from this site to another site offering free legal or other document forms for download.

Please note that the donator may have included different usage terms regarding this form, and you agree to abide by these terms. It is highly recommended that you have a licensed attorney review any legal documents for which you are searching in order to make sure that your needs are being properly and completely satisfied.

Your use of this site constitutes your acceptance of our terms of use and your agreement to hold this site, its officers, employees and any contributors to this site harmless for any damage you might incur from your use of any submissions contained on this site. If you do not agree to the above terms, please do not proceed.

These forms are provided to assist business owners and others in understanding important points to consider in different transactions. They are offered with the understanding that no legal advice, accounting, or other professional service is being offered by these documents or on this website. Laws vary in the different states. Agreements acceptable in one state may not be enforced the same way under the laws of another state. Also, agreements should relate specifically to the particular facts of each situation. Therefore, it is important to consult legal counsel whenever utilizing these forms. The Forms are not a substitute for legal advice YourFreeLegalForms.com is not engaged in recommending or referring members on the site or making claims about the competence, character or qualifications of its participating members.
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Keywords: Lease,subordinated,mortgage

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