| 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:
- First lien credit agreement — loan amounts, maturity, rates, collateral descriptions
- Second lien credit agreement — same for junior facility
- Security agreements — perfection status, filing details, collateral schedules
- Borrower organizational documents — entity type, jurisdiction
- 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
