Subordination Clause

Subordination Agreement Reading Subordination Clause 1 minute Next Subpoena

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.