Subordination, Non-Disturbance, and Attornment Contract (SNDA) (Lender-friendly) (Illinois)

This legal template is a Subordination, Non-Disturbance, and Attornment Contract (SNDA), specifically designed to favor the lender's interests. The contract pertains to the state of Illinois, and it outlines the rights and responsibilities of parties involved in a real estate transaction, typically a borrower, lender, and tenant.

The purpose of this document is to establish a clear understanding regarding the prioritization of liens and rights in the event of default or foreclosure on a property. It addresses the subordination of the tenant's rights to the lender's interests, ensuring that the lender's claim takes precedence over any claims held by the tenant.

The non-disturbance clause is also a crucial component, providing reassurance to the tenant that their rights to possession and use of the property will remain unaffected in the event of a foreclosure or any other circumstance that may threaten their tenancy. It guarantees that the tenant will not be unlawfully evicted and will be allowed to continue their occupancy under certain conditions.

Lastly, the attornment provision establishes a legal obligation for the tenant to recognize and accept the lender or any successor as their new landlord, should a foreclosure or ownership transfer occur. This ensures the tenant's continued compliance with lease terms and acknowledges the lender's authority to enforce them.

Throughout the template, specific provisions, clauses, and requirements that align with Illinois state laws and regulations are detailed, providing legal clarity and protection for all parties involved. In summary, this Lender-friendly Subordination, Non-Disturbance, and Attornment Contract (SNDA) template offers a comprehensive framework to safeguard the interests and rights of lenders, borrowers, and tenants in the context of a real estate transaction.