intercreditor-agreement

name	intercreditor-agreement
title	Intercreditor Agreement (Lien Priority)
description	Drafts a first lien/second lien intercreditor agreement governing creditor priority, enforcement rights, and payment waterfalls over shared collateral. Follows LSTA and ABA market-standard conventions. Use when drafting intercreditor agreements, lien subordination agreements, first lien/second lien arrangements, or creditor priority documents in loan and financing transactions.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/intercreditor-agreement
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	finance
language	en

Intercreditor Agreement (Lien Priority)

Drafts an intercreditor agreement establishing absolute lien priority between first lien and second lien creditors over shared collateral, incorporating LSTA-standard subordination, standstill, waterfall, turnover, and bankruptcy provisions.

Prerequisites

Collect before drafting:

1. First lien credit agreement — loan amounts, maturity, rates, collateral descriptions
2. Second lien credit agreement — same for junior facility
3. Security agreements — perfection status, filing details, collateral schedules
4. Borrower organizational documents — entity type, jurisdiction
5. Existing intercreditor/subordination arrangements (if any)

Quick Start

Draft all articles in order. Extract obligation amounts, maturity dates, and collateral descriptions from uploaded transaction documents. Mark any statutory citations not independently verified with [VERIFY].

Output Structure

Article I — Recitals & Definitions

Establish context referencing both credit facilities and shared collateral. Required defined terms:

Term	Scope
First Lien Obligations	Principal, interest (including post-petition), fees, expenses, indemnities
Second Lien Obligations	Same scope for second lien docs
Collateral	All shared collateral securing both obligation sets
Lien Priority	Absolute first lien superiority regardless of attachment/perfection order
Standstill Period	Typically 180 days, triggered by payment default or EOD under first lien docs
Discharge of First Lien Obligations	Full payment; cash pay, L/C termination, hedge unwind conditions
Insolvency Proceeding	Bankruptcy Code proceedings, receivership, assignment for benefit of creditors, foreign equivalents

Article II — Lien Priority & Subordination

• Absolute first lien priority regardless of attachment/perfection order
• Subordination covers principal, pre/post-petition interest, fees, expenses, all amounts
• Priority applies to voluntary payments, enforcement, bankruptcy, collateral dispositions