Subordination Agreement

The secured creditor agrees to subordinate its security interest in a borrower's personal property (inventory, equipment, accounts, book debts) to the new lender's security interest.
The Agreement is being signed as an inducement for the new lender to provide loan financing or credit facilities to the borrower.
This is a generic legal form which can be used in many countries.
Available as a downloadable MS Word document.

$6.29

Subordination Agreement (long form)

The purpose of the Subordination Agreement (also called a Postponement Agreement) is to induce a new lender to extend a loan to a borrower.
One lender (postponing creditor) agrees to subordinate and postpone its security interest under a loan agreement or similar instrument to the interest of a second lender (senior creditor) until the indebtedness owing to the senior creditor has been satisfied.
If the borrower's assets are distributed among its creditors, the indebtedness owing to the senior creditor would be paid out first, before distribution to any other creditors.
If the borrower is not in default under its obligations to the senior creditor, it may continue to make payments to the postponing creditor in accordance with the terms of the agreement.
If the borrower is in default under its obligations to the senior creditor, no payments on the subordinated indebtedness shall be made by the borrower. If the postponing creditor receives any such payments, it must pay them over to the senior creditor.
This generic Subordination Agreement is provided in MS Word and is fully editable to meet your needs.

$17.99