A clause in a trust deed that states that the lender's rights shall become secondary to a new trust deed is called:

Question

Quizplus · Accepted Answer

A subordination clause is a provision in a trust deed that makes the lender's rights subordinate or secondary to a new trust deed. This means that if the property is sold, the lender with the subordinated trust deed will be repaid only after the lender with the primary trust deed has been fully repaid.

A Clause in a Trust Deed That States That the Lender's