Subordination Agreement Template – US

Legal Agreement Notice

The information provided here serves as a general template for agreements that establish priority rights among parties in financial or contractual arrangements. It is not intended as legal advice and should not replace consultation with a qualified legal professional specializing in real estate, finance, or contract law. Jurisdictional differences may necessitate modifications to ensure compliance with local laws and regulations. The responsibility for utilizing this template lies solely with the user, and we accept no liability for any inaccuracies, omissions, or consequences resulting from its use without proper legal review.

Please note: This is a sample Subordination Agreement template for the United States, intended for reference only. Actual terms may differ based on specific transactions and legal requirements.

Sample Subordination Agreement (U.S.)

Parties Involved:

Senior Lender: XYZ Bank
Address: 123 Finance Avenue, New York, NY 10001

Junior Lender: ABC Lending Co.
Address: 456 Commerce Street, New York, NY 10002

Property:

Property located at 789 Main Street, New York, NY 10003, or other collateral as detailed herein.

Subordination Terms:

The Junior Lender agrees to subordinate its rights and claims to those of the Senior Lender regarding the specified property, upon the terms set forth in this agreement.

Obligations of the Junior Lender:

The Junior Lender shall not take any action that would impair, diminish, or otherwise adversely affect the Senior Lender’s security interest without prior written consent.

Governing Law:

This agreement shall be governed by the laws of the State of New York. Any disputes shall be resolved in the courts of New York County.

Additional Provisions:

• The Junior Lender shall provide notice to the Senior Lender of any default or material adverse event.
• This agreement may only be modified by a written instrument signed by both parties.
• This agreement shall be binding upon and inure to the benefit of the parties and their successors.

New York, ______________________