Contracts
What is 'subordination' in a Delaware commercial lease or mortgage context?
AOne party agreeing to be subordinate (lower priority) to another's interest✓ Correct
BThe landlord being subordinate to the tenant's right of possession
CThe broker's subordinate role to the principal
DThe junior lien automatically becoming senior upon the senior's payoff
Explanation
Subordination is the agreement of one party to make their interest (lien, lease) subordinate (lower priority) to another's interest. In a SNDA, a tenant agrees their lease is subordinate to the lender's mortgage, while the lender agrees not to disturb the tenancy.
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