Finance
In South Dakota, a 'subordination clause' in a mortgage allows the mortgage to:
ATake priority over all other liens automatically
BBe placed in a lower priority position to accommodate a new, senior lien✓ Correct
CBe transferred to a different property as collateral
DBe assumed by a new borrower without qualification
Explanation
A subordination clause in a mortgage allows the lender to agree to take a lower lien priority position relative to another lender. For example, a land purchase money mortgage may include a subordination clause to allow a construction lender to take first priority for the construction loan.
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