What is a subordination clause promissory note?

Mortgages have 2 parts (documents): Promissory Note: Contract establishing debt.

Mortgage Deed: Secures debt with real property collateral (potentially conveys title). 18) Subordination Clause A provision making the loan subordinate to (that is, lower in claim priority in the event of foreclosure than) other loans which the borrower obtains subsequent to the loan in question. Often used in seller loans and subsidized financing, to enable the recipient of such financing to still obtain a regular first mortgage from normal commercial sources.