Common use of Priority of Mortgages Clause in Contracts

Priority of Mortgages. Notwithstanding (a) the time, place, order of execution or recordation of the First Mortgage Loan Documents or the Subordinate Mortgage Loan Documents, or the method of creation, attachment or perfection of the respective liens granted pursuant thereto or the invalidity, unenforceability, avoidability or recharacterization of the liens granted pursuant thereto, (b) any terms or provisions of the First Mortgage Loan Documents or the Subordinate Mortgage Loan Documents to the contrary, or (c) any law, rule or regulation of any applicable governmental body to the contrary, the First Mortgagee, the Subordinate Mortgageee and Borrower hereby confirm and agree that: (i) the lien of the Subordinate Mortgage Loan Documents (including, without limitation, any Protective Advances made thereunder and any post-petition interest accrued upon a Bankruptcy Event (as hereinafter defined) is hereby expressly made subject and subordinate in priority to the lien of the First Mortgage Loan Documents (including, without limitation, all liens securing any Protective Advances made thereunder); (ii) the Subordinate Mortgage Indebtedness shall be subject and subordinate in payment to the First Mortgage Indebtedness; and (iii) the terms and provisions of the Subordinate Mortgage and the Subordinate Mortgage Loan Documents are expressly hereby made subject and subordinate to the terms and provisions of the First Mortgage and the First Mortgage Loan Documents. Without limiting the foregoing, the Subordinate Mortgagee agrees that all rights of the Subordinate Mortgagee to the Subordinate Mortgage Indebtedness and under the Subordinate Mortgage Loan Documents shall be expressly subject and subordinate: (x) to the rights of the First Mortgagee to the First Mortgage Indebtedness and under the First Mortgage Loan Documents; and (y) to any and all Protective Advances made and other expenses incurred under the First Mortgage Loan Documents.