Contracts

A Kentucky commercial lease contains a subordination, non-disturbance, and attornment (SNDA) agreement. The 'non-disturbance' component means:

AThe tenant agrees to keep noise levels low
BThe lender agrees not to terminate the tenant's lease if the lender forecloses✓ Correct
CThe landlord agrees not to raise rents during the lease term
DThe tenant agrees to subordinate their lease to future mortgages

Explanation

In an SNDA agreement, the non-disturbance clause is the lender's agreement that if they foreclose, they will not disturb (terminate) the tenant's lease as long as the tenant is not in default. This protects the tenant from losing their lease through the landlord's foreclosure.

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