subordination clause

subordination clause. 1. In a governing document, a clause that explicitly subjects its provisions to those in a higher-ranking document. 2. A covenant in a junior mortgage enabling the first lien to keep its priority in case of renewal or refinancing. [Cases: Mortgages 159. C.J.S. Mortgages §§ 204, 207, 213, 215.]

subordination clause Read More »