This Subordination Agreement (Short Form) is between a debtor and two of its creditors wherein one (the original creditor) agrees to subordinate its security to another creditor (new creditor) who agrees to provide a loan to the debtor. This agreement sets out the names of the debtor and the creditors, amount of new loan and the date of the new loan agreement. It also sets forth the agreement that original creditor will subordinate its interests in favor of the new creditor. It is imperative that this agreement be memorialized in writing. A written Subordination Agreement will prove invaluable in the event there are future disagreements or misunderstandings in the event the debtor defaults on the loan.

This Subordination Agreement (Short Form) contains the following provisions:

• Parties: Sets forth the names of the new lender, the debtor and the original creditor;
• Loan Information: Sets forth the date and amount of the loan which the new creditor has authorized;
• Consent/Subordination: Creditor agrees to establishment of the security held by the new creditor and consents to subordinate its interests in favor of the new creditor;
• Signatures: This agreement must be signed and dated by the original creditor.

Protect your rights and your property by using our attorney-prepared forms.

This attorney-prepared packet contains:

1. General Instructions
2. Subordination Agreement (Short Form)

State Law Compliance: This form complies with the laws of all states