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LA 1809: SNDA FOR BANK OF AMERICA AS ADMINISTRATIVE AGENT FOR GROUP OF LENDERS $49.95

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Lease Related Agreements
LA1809

Product Overview

This form is a subordination, attornment and non-disturbance agreement (commonly referred to as SNDA) drafted for the Bank of America, where the bank is functioning as the administrative agent for a group of lender banks that made the real estate loan for the property.

The document effects a subordination of the tenant’s lease to the financing encumbering the property furnished by the lender group, and provides the tenant with some measure of possessory rights if the landlord finds itself in default under the financing.

In such a case, the tenant will not be disturbed if it continues to pay rent and otherwise perform under the lease.

Number of Pages: 12

 

Quick Look

SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT

Lender: BANK OF AMERICA, N.A., as Administrative Agent

THIS SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT (this "Agreement") dated __________, 20__, is made among COMMERCIAL TENANT, INC., a __________ corporation ("Tenant"), COMMERCIAL LANDLORD, a __________ limited partnership ("Landlord"), and BANK OF AMERICA, N.A., a national banking association, as Administrative Agent and any successor appointed by the Lenders as Administrative Agent ("Administrative Agent").

WHEREAS, Administrative Agent and certain other lenders (herein, the "Lenders") made a loan (the "Loan") to Landlord secured by, among other things, a Deed of Trust, Assignment of Rents and Leases, Security Agreement, Fixture Filing and Financing Statement, executed by Landlord to Administrative Agent (herein, as it may have been or may be from time to time renewed, extended, amended or supplemented, called the "Mortgage"), recorded as ___________________ in the Real Property Records of __________ County, __________, covering, among other property, the land (the "Land") described in Exhibit "A" which is attached hereto and incorporated herein by reference, and the improvements ("Improvements") thereon (such Land and Improvements being herein together called the "Property");

WHEREAS, Tenant is the tenant under a lease from Landlord dated ________, 20__ (herein, as it may from time to time be renewed, extended, amended or supplemented, called the "Lease"), covering a portion of the Property (said portion being herein referred to as the "Premises"); and

WHEREAS, the term "Landlord" as used herein means the present landlord under the Lease or, if the landlord's interest is transferred in any manner, the successor(s) or assign(s) occupying the position of landlord under the Lease at the time in question.

NOW, THEREFORE, in consideration of the mutual agreements herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. Subordination. Tenant agrees and covenants that the Lease and the rights of Tenant thereunder, all of Tenant's right, title and interest in and to the property covered by the Lease, and any lease thereafter executed by Tenant covering any part of the Property, are and shall be subject, subordinate and inferior to (a) the Mortgage and the rights of Administrative Agent and the other Lenders thereunder, and all right, title and interest of Administrative Agent and the Lenders in the Property, and (b) all other security documents now or hereafter securing payment of any indebtedness of the Landlord (or any prior landlord) to Administrative Agent and the other Lenders which cover or affect the Property (the "Security Documents"). This Agreement is not intended and shall not be construed to subordinate the Lease to any mortgage, deed of trust or other security document other than those referred to in the preceding sentence, securing the indebtedness to Administrative Agent and other Lenders.

2. Non-Disturbance. Administrative Agent, on behalf of itself and the other Lenders, agrees that so long as the Lease is in full force and effect and Tenant is not in default in the payment of rent, additional rent or other payments or in the performance of any of the other terms, covenants or conditions of the Lease on Tenant’s part to be performed (beyond the period, if any, specified in the Lease within which Tenant may cure such default), (a) Tenant's possession of the Premises under the Lease shall not be disturbed or interfered with by Administrative Agent or the other Lenders in the exercise of any of its foreclosure rights under the Mortgage or conveyance in lieu of foreclosure, and (b) Administrative Agent and the other Lenders will not join Tenant as a party defendant for the purpose of terminating Tenant's interest and estate under the Lease in any proceeding for foreclosure of the Mortgage.

3. Attornment.

(a) Tenant covenants and agrees that in the event of foreclosure of the Mortgage, whether by power of sale or by court action, or upon a transfer of the Property by conveyance in lieu of foreclosure (the purchaser at foreclosure or the transferee in lieu of foreclosure, including Administrative Agent or any other Lender if it is such purchaser or transferee, being herein called "New Owner"), Tenant shall attorn to the New Owner as Tenant's new landlord, and agrees that the Lease shall continue in full force and effect as a direct lease between Tenant and New Owner upon all of the terms, covenants, conditions and agreements set forth in the Lease and this Agreement, except for provisions which are impossible for New Owner to perform; provided, however, that in no event shall the New Owner be:

(i) liable for any act, omission, default, misrepresentation, or breach of warranty, of any previous landlord (including Landlord) or obligations accruing prior to New Owner's actual ownership of the Property;

(ii) subject to any offset, defense, claim or counterclaim which Tenant might be entitled to assert against any previous landlord (including Landlord);

(iii) bound by any payment of rent, additional rent or other payments, made by Tenant to any previous landlord (including Landlord) for more than one (1) month in advance;

(iv) bound by any amendment, or modification of the Lease hereafter made, or consent, or acquiescence by any previous landlord (including Landlord) under the Lease to any assignment or sublease hereafter granted, without the written consent of Administrative Agent; or

(v) liable for any deposit that Tenant may have given to any previous landlord (including Landlord) which has not, as such, been transferred to New Owner.

(b) The provisions of this Agreement regarding attornment by Tenant shall be self-operative and effective without the necessity of execution of any new lease or other document on the part of any party hereto or the respective heirs, legal representatives, successors or assigns of any such party. Tenant agrees, however, to execute and deliver upon the request of New Owner, any instrument or certificate which in the reasonable judgment of New Owner may be necessary or appropriate to evidence such attornment, including a new lease of the Premises on the same terms and conditions as the Lease for the unexpired term of the Lease.

(continued)


End of Excerpt

 

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