intercreditor-lien-priority

name	intercreditor-lien-priority
title	Intercreditor Agreement (Lien Priority)
description	Drafts U.S. intercreditor agreements establishing first lien vs second lien priority over shared collateral, covering standstill, enforcement control, payment waterfall/turnover, and 11 U.S.C. 510(a) subordination. Use for first lien/second lien financings, refinancing, or intercreditor negotiations requiring lien priority and remedies governance. Trigger: intercreditor, lien priority, first lien, second lien, standstill, turnover, payment waterfall, subordination agreement.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/intercreditor-lien-priority
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	finance
language	en
tags	["agreement","drafting","transactional"]

Intercreditor Agreement (Lien Priority)

Allocates collateral control, remedies, and payment rights between first lien and second lien creditors under a shared collateral structure.

Quick Start

1. Collect first lien and second lien credit/security documents.
2. Populate the intake table below from deal term sheet.
3. Confirm key elections with parties.
4. Draft per article outline; run required-clauses checklist before delivery.

Intake

Field	Source	Notes
Parties/roles	Term sheet	Agents, lenders, borrower, guarantors
Collateral scope	Security agreements	Shared vs excluded collateral
Obligations scope	Credit agreements	Principal, interest, fees, hedging, LCs
Standstill period	Term sheet	Exact days and triggers
Permitted payments	Term sheet	Allowed payments to second lien, if any
Bankruptcy positions	Term sheet	DIP, cash collateral, 363 sale, plan voting
Governing law	Term sheet	Commonly NY or DE

Key Elections

Election	Options	Insert
Standstill trigger	First lien EoD notice or occurrence	[INSERT]
Standstill length	Fixed days	[__] days
Permitted payments to 2L	None / limited	[INSERT]
2L enforcement after standstill	Allowed / restricted	[INSERT]
Borrower party	Signatory / acknowledgment	[INSERT]
Discharge definition	Cash pay + cash collateralize	[INSERT]

Article Outline

1. Definitions and construction
2. Lien priority and subordination
3. Enforcement rights and standstill
4. Payment waterfall and turnover
5. Bankruptcy and insolvency
6. Amendments/restrictions on second lien documents
7. Representations and warranties