Subordination of Preferred Mortgage Form
Subordination of Vessel Mortgage form with examples and instructions.
The Subordination of Preferred Mortgage form is designed to allow a subsequent mortgage to attain priority over an earlier filing. Mortgages are perfected according to the chronological order on which filed and this will overcome such priority.
Usage Context
A subordination of preferred vessel mortgage when properly executed is considered as a recordable instrument subject to filing with the National Vessel Documentation Center. Upon acceptance, it is indexed and recorded separately on the vessel's underlying abstract of title. The subordination agreement must be given by the mortgagee of an affected recording.
Form Examples
Examples of the subordination agreement are available in Adobe PDF format from the Referrals for this page. One is for a subordination to a mortgage that has already been recorded. The he other applies to a mortgage that in the process of being filed. They can be easily converted into your favorite word processing application for modification and editing purposes. If your system does not already have this capability, there are a number of free or subscription internet services available that can provide such an accommodation.
Citations and Instructions
Paragraph 1 - Describe the mortgage being subordinated,
which is the first one recorded. This should include the full names and
current addresses of the mortgagor and mortgagee, along with the
recording information. The mortgage described in this paragraph will
assume a subordinate position to that of the next paragraph.
Paragraph 2 - Describe the mortgage which is to take
priority over the one being subordinated. This should include the full
names and current addresses of the mortgagor and mortgagee. Include the
recording information if already recorded. If not, indicate the date on
which this mortgage was submitted for recording. The subordination can
also accompany the mortgage when sent for recording.
Signature Date Line - Insert the date on which the
instrument was executed.
Signature Line - Insert the name and capacity of the person
signing. If the subordination is granted by an individual or
individuals, all must sign and their capacity should be shown as
"Grantor". Representatives signing on behalf of an entity should indicate their official capacity.
This instrument can not be executed in counterparts. However, an
additional signature page can be attached to facilitate separate
signings if necessary.
Acknowledgement - All signatures must be acknowledged
by a U.S. notary, U.S. Consulate, or apostillized by a member
country of the Hague Convention. The notary
public may need to provide an attachment if the standard acknowledgement
on this form does not fulfill your jurisdictional requirements. Any
changes upon execution must be noted on the acknowledgment. Please note that attachments count as
additional pages with respect to recording fees. The acknowledgement
date can not precede the respective signature date.
Conclusion
If unsure of whether this subordination form contains the required citations, you may contact the National Vessel Documentation Center or it can be accompanied by an optional application for filing as shown in the referrals. In any event, a mortgage subordination can affect the legal rights of the respective parties. You should consult with an attorney with any such concerns.
References and Referrals
Comments - Suggestions - Corrections