We use the same language in a refinance deed of trust/mortgage but it's purpose is to reduce the amount of documentary stamps paid when filing the new deed of trust.  I suppose I need to look at our statute to see if the lien priority is affected, but I don't think that to be the case.

In fact, when faced with a situation where the new lender wants to be in first lien position we have to have executed by both lenders a specific Subordination Agreement laying out the details of the deeds of trust that are to be affected.  That agreement is then recorded in the land records prior to the recordation of the new deed of trust.