2016 Maryland Code
Real Property
Title 4 - Requisites of Valid Instruments
Subtitle 1 - General Rules
§ 4-111. Subordination of lender's interest
(a) Definitions. --
(1) In this section the following words have the meanings indicated.
(2) "Lender" means a person holding an interest in or lien on property pursuant to a mortgage or deed of trust.
(3) "Subordination agreement" means an agreement establishing priorities:
(i) Between or among lenders; or
(ii) Between or among a lender and any other person or persons holding an interest in property.
(b) Subordination of interest. -- A lender may subordinate its interest under a mortgage or deed of trust to the interest of another lender or to the property interest of a person, through execution of a subordination agreement on behalf of the subordinating lender by:
(1) As to a lender secured by a mortgage, the mortgagee or assignee; or
(2) As to a lender secured by a deed of trust, the trustee or successor trustee or the holder of the note or other obligation secured by the deed of trust.
(c) Applicability. -- This section applies to all subordination agreements existing on or after October 1, 1997.
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