Finance
In Louisiana, a 'subordination agreement' in real estate financing allows a:
AFirst mortgage to be subordinated to a new second mortgage
BLater-recorded lien to take priority over an earlier-recorded lien when the earlier lien holder agrees to step aside✓ Correct
CJunior lien to become automatically superior
DMortgage to be extinguished without payment
Explanation
A subordination agreement is a contract where a senior lien holder voluntarily agrees to allow a junior lien holder's interest to take priority over the senior interest — often used when refinancing to allow a new first mortgage to have priority over an existing subordinate lien.
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