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Leases, Security Devices, Recording Statutes, Collateral
Leases have priority over mortgages and other security devices if they were entered into prior to the security devices and if the leases were duly recorded, or in the alternative, the lessee can prove that the holder of the security device had actual notice of the leases existence. Which means, that should the creditor seek to foreclose on the premises, the lessee has a protected right to remain on the premises pursuant to the terms of the lease. This holds true for a subsequent purchaser of the property either at the foreclosure sale or thereafter.