Subordination Agreement printable pdf download

DNR Grant Requirements for Conservation Easements

Model Subordination Agreement – 9/05

SUBORDINATION AGREEMENT

This Subordination Agreement is made between __________________

(“Lender”), a ___________________ of the State of _____________

and _____________________________ (“Easement Holder”), a

___________________________ of the State of _________________.

RECITALS:

A. The Lender made a loan to ___________________(“Borrower”).

In order to secure the loan, the Borrower entered into a mortgage in

favor of the Lender. Said mortgage was filed on ________________,

at the Register of Deeds Office in _________________County,

Wisconsin, as Document ______________, on Page(s) _______ in

Volume _______ (“Mortgage”). [ Must cite document, may change

Recording Area

format. ]

Name and Return Address

The Mortgage created a lien on certain real property owned by

the Borrower in __________ County, Wisconsin, more particularly

described in Exhibit A attached hereto and made part of this

Parcel Identification Number

Agreement by reference (the “Property”).

The Borrower has agreed to grant a Conservation Easement (“Easement”) to the Easement Holder, restricting use

of the Property, or a portion thereof. It is anticipated that the Borrower and Easement Holder will execute the Easement

on _____________, 20_____. A copy of the Easement has been provided to the Lender and is attached as Exhibit B

and incorporated by this reference. [ Italicized type is optional. ]

The Lender is willing to subordinate the Mortgage to the provisions of the Easement in order to facilitate execution

of the Easement.

NOW THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, and intending

to be legally bound hereby, the Lender and Easement Holder agree as follows:

The Mortgage and all of the Lender’s rights, interests, claims and remedies under the Mortgage shall be

subordinate to the Easement and the rights of the Easement Holder to enforce the terms and conditions of the Easement,

with the same force and effect as if the Easement had been executed and recorded prior to the execution and recording of

the Mortgage.

The Lender agrees that in the event of a foreclosure of the Mortgage or a transfer in lieu of foreclosure of any

portion of the Property, the purchaser at any such foreclosure or the transferee under any deed in lieu of foreclosure shall

take title to the Property subject to all of the terms and conditions of the Easement.

This Agreement shall be binding upon and inure to the benefit of Lender and Easement Holder and their respective

successors and assigns until said Mortgage is paid off or satisfied.

This Agreement may not be amended or modified except by an instrument in writing agreed to by the Lender and

Easement Holder.

This Agreement shall be construed and enforced in accordance with the laws of Wisconsin.

Subordination Agreement