Subordination, Non-Disturbance and Attornment (SNDA)
Gridlync land and infrastructure glossary.
An SNDA is an agreement among a tenant, landowner, and the landowner’s lender that subordinates the lease to the lender’s mortgage while protecting the tenant’s right to stay if the lender forecloses. It is common with ground leases. The tenant agrees its lease ranks below the mortgage (subordination), the lender promises not to terminate the lease on foreclosure if the tenant performs (non-disturbance), and the tenant agrees to recognize the lender or buyer as its new landlord (attornment). It lets a project lease survive a lender takeover.
SNDAs protect long-term project leases. Gridlync keeps these agreements tied to their underlying lease and parties.
Example
Helix Solar, the Maddox family as landowner, and the family’s bank sign an SNDA so that if the bank forecloses on the Maddox land, Helix can keep operating its array under the same lease while paying rent to the bank instead.