Intercreditor Structures - Mortgage & Securities
Legal documentation of agreements among multiple creditors regarding ranking, priority, enforcement, and intercreditor rights within a single financing structure.
An intercreditor structure governs the contractual relationship between multiple creditors asserting claims against the same debtor or the same security interests.
This arrangement determines, among other things:
- The relative ranking of creditors.
- Priority in the enforcement of securities.
- Limitations on enforcement rights.
- Information and consultation obligations.
- Distribution of proceeds.
- Coordination in the event of default or restructuring.
We prepare customized documentation tailored to:
- Multiple financing parties.
- Banks, investors, and subordinated creditors.
- Existing and new security positions.
- Complex capital structures.
- Applicable law and enforcement mechanisms.
The intercreditor agreement is legally structured to ensure that the position of each creditor is clear, enforceable, and consistent within the overall financing architecture.
Scope of documentation
The assignment may include, among other things:
- Establishment of creditor ranking.
- Limitations on individual enforcement.
- Standstill provisions.
- Distribution of enforcement proceeds.
- Information and consultation rights.
- Release and security management provisions.
- Amendment mechanisms in the event of restructuring.
- Linkage with security documentation.
Each structure is legally analyzed in advance to prevent conflicts among creditors and priority disputes.