| 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
- Collect first lien and second lien credit/security documents.
- Populate the intake table below from deal term sheet.
- Confirm key elections with parties.
- 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
- Definitions and construction
- Lien priority and subordination
- Enforcement rights and standstill
- Payment waterfall and turnover
- Bankruptcy and insolvency
- Amendments/restrictions on second lien documents
- Representations and warranties
