Nature of rights
- subordination of interests.
1.Any person, including a person who owns an interest in the real property, the agency or a municipality or other unit of local government, may be a holder. An environmental covenant may identify more than one holder. The interest of a holder is an interest in real property.
2.A right of an agency under this chapter or under an environmental covenant, other than a right as a holder, is not an interest in real property.
3.An agency is bound by any obligation it assumes in an environmental covenant, but an agency does not assume obligations merely by signing an environmental covenant. Any other person who signs an environmental covenant is bound by the obligations the person assumes in the covenant, but signing the covenant does not change obligations, rights or protections granted or imposed under law other than this chapter except as otherwise provided in the covenant.
4.The following rules apply to interests in real property in existence at the time an environmental covenant is created or amended:
(a)An interest that has priority under any other law is not affected by an environmental covenant unless the person who owns the interest subordinates that interest to the covenant.
(b)This chapter does not require a person who owns a prior interest to subordinate that interest to an environmental covenant or to agree to be bound by the covenant.
(c)A subordination agreement may be contained in an environmental covenant covering real property or in a separate record. If the environmental covenant covers commonly owned property in a common-interest community, the record may be signed by any person authorized by the executive board of the unit-owners’ association.
(d)An agreement by a person to subordinate a prior interest to an environmental covenant affects the priority of that person’s interest, but does not by itself impose any affirmative obligation on the person with respect to the environmental covenant.
Section 445D.120 — Nature of rights; subordination of interests.,