Subordination Agreement {DFPI-EL 336}

DFPI-EL 336 - SUBORDINATION AGREEMENT. This is a form used by the California Department of Financial Protection and Innovation (DFPI) to establish the priority of claims against a promissory note. This form is typically used when a payee agrees to subordinate their claim on a note to other creditors of the obligor (the party who owes the debt). In other words, the payee agrees that their claim will be paid after the claims of other creditors are settled. This agreement specifies the amount of the note, the parties involved, and includes a termination date for the subordination, usually a minimum of one year. The form also requires a photocopy of the signed promissory note to be attached to support the subordination. The purpose of this agreement is to ensure that the payee's claim is placed in a lower priority position relative to other creditors, which could be relevant for escrow companies or other businesses that are managing financial obligations. The form emphasizes that the subordination cannot be rescinded or amended without prior written notice to the Commissioner of Financial Protection and Innovation, thereby providing a formal process for oversight and accountability. www.FormsWorkflow.com