Subordination Clause

Definition:   a clause in which the holder of a mortgage permits a subsequent mortgage to take priority

Pronunciation:   \sə-ˈbȯr-də-ˈnā-shən\ \ˈklȯz\

Used in a Sentence:    This clause provides that if a prior mortgage is paid off or renewed, the junior mortgage will continue in its subordinate position and will not automatically become higher or first mortgage.

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