Escrow & Title

In South Dakota, a 'subordination agreement' between lienholders affects:

AThe interest rate on the subordinated loan
BThe priority order of liens against the property✓ Correct
CThe property's assessed value for tax purposes
DThe term of the subordinated loan

Explanation

A subordination agreement is a recorded document that changes the priority order of liens, with the subordinating lienholder moving to a lower priority position to allow another lien to take precedence.

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