Sec. 49-31c. When subordination not subject to statute of frauds and automatically effective.
Sec. 49-31c. When subordination not subject to statute of frauds and automatically effective. A subordination agreement which provides that a mortgage, lease or
other interest in real property shall be subordinated to one or more future mortgages is
not subject to the provisions of section 52-550 and is valid and binding notwithstanding
that the subordination agreement does not contain any of the terms or provisions of the
future mortgage or mortgages. If the subordination agreement so provides, the subordination is automatically effective at such time or times as the future mortgage or mortgages come into existence without the necessity for the subordinating party to execute
any further instruments, provided the mortgage does not violate the terms of the original
subordination agreement.
(P.A. 78-89, S. 1, 3; P.A. 79-602, S. 66.)
History: P.A. 79-602 rephrased provisions but made no substantive changes.