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3DNR Grant Requirements for Conservation Easements
Model Subordination Agreement – 9/05
SUBORDINATION AGREEMENT
This Subordination Agreement is made between __________________
(“Lender”), a ___________________ of the State of _____________
and _____________________________ (“Easement Holder”), a
___________________________ of the State of _________________.
RECITALS:
A. The Lender made a loan to ___________________(“Borrower”).
In order to secure the loan, the Borrower entered into a mortgage in
favor of the Lender. Said mortgage was filed on ________________,
at the Register of Deeds Office in _________________County,
Wisconsin, as Document ______________, on Page(s) _______ in
Volume _______ (“Mortgage”). [ Must cite document, may change
Recording Area
format. ]
Name and Return Address
B.
The Mortgage created a lien on certain real property owned by
the Borrower in __________ County, Wisconsin, more particularly
described in Exhibit A attached hereto and made part of this
Parcel Identification Number
Agreement by reference (the “Property”).
C.
The Borrower has agreed to grant a Conservation Easement (“Easement”) to the Easement Holder, restricting use
of the Property, or a portion thereof. It is anticipated that the Borrower and Easement Holder will execute the Easement
on _____________, 20_____. A copy of the Easement has been provided to the Lender and is attached as Exhibit B
and incorporated by this reference. [ Italicized type is optional. ]
D.
The Lender is willing to subordinate the Mortgage to the provisions of the Easement in order to facilitate execution
of the Easement.
NOW THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, and intending
to be legally bound hereby, the Lender and Easement Holder agree as follows:
1.
The Mortgage and all of the Lender’s rights, interests, claims and remedies under the Mortgage shall be
subordinate to the Easement and the rights of the Easement Holder to enforce the terms and conditions of the Easement,
with the same force and effect as if the Easement had been executed and recorded prior to the execution and recording of
the Mortgage.
2.
The Lender agrees that in the event of a foreclosure of the Mortgage or a transfer in lieu of foreclosure of any
portion of the Property, the purchaser at any such foreclosure or the transferee under any deed in lieu of foreclosure shall
take title to the Property subject to all of the terms and conditions of the Easement.
3.
This Agreement shall be binding upon and inure to the benefit of Lender and Easement Holder and their respective
successors and assigns until said Mortgage is paid off or satisfied.
4.
This Agreement may not be amended or modified except by an instrument in writing agreed to by the Lender and
Easement Holder.
5.
This Agreement shall be construed and enforced in accordance with the laws of Wisconsin.
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DNR Grant Requirements for Conservation Easements
Model Subordination Agreement – 9/05
SUBORDINATION AGREEMENT
This Subordination Agreement is made between __________________
(“Lender”), a ___________________ of the State of _____________
and _____________________________ (“Easement Holder”), a
___________________________ of the State of _________________.
RECITALS:
A. The Lender made a loan to ___________________(“Borrower”).
In order to secure the loan, the Borrower entered into a mortgage in
favor of the Lender. Said mortgage was filed on ________________,
at the Register of Deeds Office in _________________County,
Wisconsin, as Document ______________, on Page(s) _______ in
Volume _______ (“Mortgage”). [ Must cite document, may change
Recording Area
format. ]
Name and Return Address
B.
The Mortgage created a lien on certain real property owned by
the Borrower in __________ County, Wisconsin, more particularly
described in Exhibit A attached hereto and made part of this
Parcel Identification Number
Agreement by reference (the “Property”).
C.
The Borrower has agreed to grant a Conservation Easement (“Easement”) to the Easement Holder, restricting use
of the Property, or a portion thereof. It is anticipated that the Borrower and Easement Holder will execute the Easement
on _____________, 20_____. A copy of the Easement has been provided to the Lender and is attached as Exhibit B
and incorporated by this reference. [ Italicized type is optional. ]
D.
The Lender is willing to subordinate the Mortgage to the provisions of the Easement in order to facilitate execution
of the Easement.
NOW THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, and intending
to be legally bound hereby, the Lender and Easement Holder agree as follows:
1.
The Mortgage and all of the Lender’s rights, interests, claims and remedies under the Mortgage shall be
subordinate to the Easement and the rights of the Easement Holder to enforce the terms and conditions of the Easement,
with the same force and effect as if the Easement had been executed and recorded prior to the execution and recording of
the Mortgage.
2.
The Lender agrees that in the event of a foreclosure of the Mortgage or a transfer in lieu of foreclosure of any
portion of the Property, the purchaser at any such foreclosure or the transferee under any deed in lieu of foreclosure shall
take title to the Property subject to all of the terms and conditions of the Easement.
3.
This Agreement shall be binding upon and inure to the benefit of Lender and Easement Holder and their respective
successors and assigns until said Mortgage is paid off or satisfied.
4.
This Agreement may not be amended or modified except by an instrument in writing agreed to by the Lender and
Easement Holder.
5.
This Agreement shall be construed and enforced in accordance with the laws of Wisconsin.
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Signed this _______ day of ____________, 20____.
[ NAME OF LENDER ]
By:________________________________________
[ Name and Title of Authorized Representative ]
STATE OF______________________________)
) ss.
COUNTY OF ___________________________ )
The foregoing instrument was acknowledged before me this ______ day of __________________, 20____, by
________________________________________, ___________________________________________ of
__________________________________ corporation, on behalf of the corporation, as his or her, and its, free
act and deed.
_____________________________________
Notary Public
My Commission Expires: ________________
Signed this _______ day of ____________, 20____.
[ NAME OF EASEMENT HOLDER ]
By: ______________________________________
[ Name and Title of Authorized Representative ]
STATE OF ______________________________)
) ss.
COUNTY OF __________________________ _)
The foregoing instrument was acknowledged before me this ______ day of _____________, 20____, by
_________________________________________, _________________________________________ of
____________________________________________ corporation, on behalf of the corporation, as his or her, and
its, free act and deed.
_______________________________________
Notary Public
My Commission Expires: _________________
This document was drafted by [ Insert Name of Drafter ].
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Exhibit A – Legal Description
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