In a typical SNDA, the tenant agrees that its leasehold interest is subordinate to the mortgage. This means that if the mortgage is foreclosed, the leasehold may be extinguished. Because tenants are rightfully reluctant to agree to such an arrangement, in exchange for the subordination, the lender typically agrees not to disturb the tenant’s possession within certain limits . . .

Read the full article on the Miller Nash website. A similar version of this article published in the Portland Business Journal on March 2, 2012.