Financing第 85 / 120 题

A clause in a loan that allows an existing lien to move to a lower priority position behind a new loan is a:

a.Subordination clause
b.Acceleration clause
c.Defeasance clause
d.Alienation clause

解析

A subordination clause allows an existing lender to voluntarily agree that its lien will take a lower priority than a later loan. It is common in land development financing where a construction loan must take first position. Without subordination, lien priority normally follows recording order.

法律依据: CA Civil Code

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