Common use of Section 21.1 Subordination Clause in Contracts

Section 21.1 Subordination. This Lease and all rights of Tenant hereunder are subject and subordinate to all Facility Mortgages and all Superior Leases which may now or hereafter affect Lessor’s interest in the applicable Leased Property and any interest of any Superior Lessor (all such leases and mortgages, collectively, the “Superior Mortgages”), and to all renewals, modifications, consolidations, replacements and extensions of the Superior Mortgages, provided, however, that, in the case of any Superior Mortgages (other than the Existing Ground Leases), Tenant’s aforesaid subordination shall be conditioned on Tenant’s receipt of a so-called “non-disturbance” agreement in favor of Tenant from any such Superior Lessor (other than the Superior Lessors under the Existing Ground Leases) or Superior Mortgagee (defined below) on such Superior Lessor’s or Superior Mortgagee’s commercially reasonable standard form. This Section shall be self-operative and no further instrument of subordination shall be required. In confirmation of such subordination, Tenant agrees to execute and deliver promptly any commercially reasonable form of instrument (in recordable form, if requested) that Lessor, any Superior Lessor or the holder of any Superior Mortgage (a “Superior Mortgagee”) may request to evidence such subordination. Lessor shall use its reasonable efforts to obtain from each currently existing Facility Mortgagee, if any, a so-called “non-disturbance” agreement in favor of Tenant on such Facility Mortgagee’s standard form.

Appears in 2 contracts

Sources: Master Lease Agreement (Kindred Healthcare, Inc), Master Lease Agreement (Ventas Inc)