SUBORDINATION AGREEMENT
Reference is made to a mortgage (the “Earlier Mortgage”) dated ________________, recorded with _________________________ Registry of Deeds in Book _____, Page _____, from ______________________________________ (the “Mortgagor”) to ________________ ______________________, covering premises in ____________________________________, ___________ County, Massachusetts and securing a promissory note in the original principal amount of ______________________________________ Dollars ($__________). _________ ___________________________, ____________________________________, present holder of the Earlier Mortgage and the promissory note secured thereby, hereby subordinate[s] the Earlier Mortgage [and the note and claim secured thereby]* to a mortgage from Mortgagor to ______________________________________ of even delivery date and recorded herewith (the “Later Mortgage”) securing a loan in the original principal amount of _______________ _______________________ Dollars ($__________), as fully and completely as though the Earlier Mortgage had been executed, delivered and recorded subsequent to the execution, delivery and recording of the Later Mortgage. [THE FOLLOWING PARAGRAPH SUBORDINATES THE EARLIER MORTGAGE TO A FUTURE MORTGAGE] [______________________________________ further subordinates the Earlier Mortgage to any future mortgage (the “Future Mortgage”) in a principal amount not to exceed ______________________________________ Dollars ($__________) on said premises from Mortgagor ______________________________________ to the new Mortgagee, as fully and completely as though the Earlier Mortgage had been executed, delivered and recorded subsequent to the execution, delivery and recording of the Future Mortgage, provided, however, that at the time of recording of the Future Mortgage, the Later Mortgage is fully satisfied and discharged.] WITNESS the execution hereof under seal this _____ day of _____________, 20__.
*
In preparing the subordination consider whether the prior debt as well as the mortgage are to be junior to the new debt. If the prior debt is to be subordinate, additional provisions may be necessary to clarify the extent of the subordination, e.g. duration of subordination, treatment or prepayments received by subordinated lender etc.
2
099998.000522 DEC LIBD/26687.2 11/29/01 10:56 am
COMMONWEALTH OF MASSACHUSETTS
County of
, ss.
On this __ day of _________, 20__, before me, the undersigned notary public, personally appeared ____________________________________, proved to me though satisfactory identification, which were [driver’s license] or [based on the undersigned’s personal knowledge of the identity of the principal], to be the person whose name is signed on the preceding or attached document, and acknowledged to me that (he) (she) signed it voluntarily for its stated purpose. (as general partner of the partnership)(as ___________ for ___________________, a corporation) (as manager for ____________, a limited liability company)
______________________________________ (Official Signature and Seal of Notary) My Commission Expires:
3
099998.000522 DEC LIBD/26687.2 11/29/01 10:56 am