Nowadays, it is already a common practice that a debtor could have more than one creditor. This kind of arrangement is susceptible to conflicts and disputes especially when there is a clashing of rights. To solve this kind of situation, an intercreditor agreement is entered into by two or more creditors to settle and agree in advance how they will reconcile their clashing interests that the debtor has to deal with.
This is a type of a contract agreement. This agreement aims to protect right and solve conflicting interests. Similar to an employee agreement that provides the terms and conditions of the employment, intercreditor agreements outline the obligations and rights of the parties to a debt or loan transaction.
Bank Inter-Creditor Agreement
Subordination and Intercreditor Agreement
What Are Included in an Intercreditor Agreement?
Sample agreement templates made it easy for concerned creditors to make their own intercreditor agreements. Through the use of basic agreement templates, the essential elements of the contract are featured in the samples and thus make your work more convenient. Nonetheless, the creditors involved must familiarize the basic elements of an intercreditor agreement before drafting one.
- Title and statement of the parties to the agreement – The parties to this agreement are the senior lender and the junior lender.
- Main stipulations as to the agreement between the senior lender and the junior lender – These may include a definition of the terms used, the obligations and rights of both parties, agreements in cases of default, standstill agreements or provisions, the terms of the agreement, the miscellaneous provisions.
- Signatures of the contracting parties – By affixing their respective signatures, there is an implication that both parties agree to the provisions of the agreement.
Tips to Enhance your Legal Writing Skills
Other than the printable agreement templates provided, there are also various way and means for a person to improve his or her legal writing skills especially in dealing with agreements and contract templates. Consider the following:
- Prepare the needed documents and organize your thoughts. Organization and consistency is very essential in writing contractual agreements. By organizing your ideas beforehand, you can comprehensively capture the subject matter and dissect them into important sections for easy reading and comprehension.
- Write in clear and simple language. Unless otherwise needed, you need to simplify the terms of your contract. Legal jargons are only added if deemed necessary and are accompanied by definitions for clarity. As shown in contract agreement template, contracts are written in a straightforward and clear consistent language.
- Choose your verbs wisely. Verbs are also important in writing contracts. Legal experts consider the degree of emphasis that they need before choosing an action word for it. Action words must empower your entire
- Use an active voice. Active voice is used so that it is clear who among the parties is mandated or obliged to perform a certain act or obligation.