Intercreditor Agreement

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Intercreditor Agreement
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Intercreditor Agreement

Intercreditor Agreement

A contract between multiple lenders that establishes the priority of repayment in case of borrower default.

38,282.86

(4 customer reviews)

Description

An Intercreditor Agreement is a financial contract used when multiple lenders provide funding to a borrower. It establishes the hierarchy of debt repayment, detailing which lenders are paid first if the borrower defaults. The agreement includes priority ranking, collateral distribution, interest payment terms, and dispute resolution methods. These contracts are common in large-scale business financing and real estate development, where senior and junior creditors must coordinate repayment terms. By reducing conflicts between creditors, intercreditor agreements provide structured and predictable debt management.