§ 253.8. Subordination.
(a) As a condition of approving an environmental covenant, the Department may require that an owner of a prior interest subordinate its interest to the environmental covenant.
(b) If the Department requires subordination of a prior interest to the environmental covenant, it will notify the person submitting the environmental covenant and the owner of the prior interest of this condition in writing and describe the basis for requiring subordination.
(c) A subordination agreement may be contained in the environmental covenant or in a separate record. If contained in a separate record, a copy of the subordination document shall be provided to the Department prior to approval of the environmental covenant, unless the Department agrees to an extension of time. If the environmental covenant covers commonly owned property in a common interest community, the agreement or record may be signed by any person authorized by the governing board of the owners association.
(d) An agreement by a person to subordinate a prior interest to an environmental covenant affects the priority of the person’s interest but does not itself impose an affirmative obligation on the person with respect to the environmental covenant nor does it affect the person’s existing environmental liabilities.
Cross References This section cited in 25 Pa. Code § 253.2 (relating to contents and form of environmental covenant).
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