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Deed Of Subordination
"I need a Deed of Subordination to establish priority between a $10M senior bank loan and a $2M shareholder loan for our Singapore manufacturing company, with the shareholder agreeing to fully subordinate their debt until the bank loan is repaid."
1. Parties: Identifies all parties to the deed, including senior and junior creditors, and the debtor
2. Background: Sets out the context of existing debts and reason for subordination
3. Definitions: Defines key terms used throughout the deed including Senior Debt, Subordinated Debt, and Enforcement Action
4. Subordination Provisions: Core terms establishing the ranking of debts and subordination mechanics
5. Undertakings: Commitments by parties regarding the subordinated debt and restrictions on payments
6. Duration: Period for which subordination remains effective and termination provisions
7. Execution: Formal execution blocks for all parties including attestation requirements
1. Security Provisions: Details of any security arrangements and their priority ranking
2. Turnover Provisions: Provisions for handling unauthorized payments received by junior creditors
3. Further Assurance: Obligation to take additional steps if needed to give effect to the subordination
1. Schedule 1 - Details of Senior Debt: Comprehensive list of senior debt facilities and amounts
2. Schedule 2 - Details of Subordinated Debt: Comprehensive list of subordinated debt facilities and amounts
3. Schedule 3 - Form of Accession Deed: Template for additional parties to join the subordination arrangement
4. Schedule 4 - Notice Provisions: Contact details and methods for serving notices between parties
Authors
Additional Creditor
Business Day
Debt Documents
Enforcement Action
Event of Default
Finance Documents
Final Discharge Date
Insolvency Event
Junior Creditor
Junior Debt
Junior Debt Documents
Junior Finance Documents
Liabilities
Parties
Payment
Permitted Junior Payment
Permitted Payment
Senior Creditor
Senior Debt
Senior Debt Documents
Senior Finance Documents
Security
Security Documents
Subordinated Debt
Subordinated Rights
Subordination Period
Turnover Proceeds
Unauthorized Payment
Subordination
Ranking
Payment Restrictions
Turnover
Enforcement
Representations and Warranties
Undertakings
Permitted Payments
Payment Blockage
Security
Information Rights
Protection of Subordination
Changes to Parties
Accession Mechanics
Assignment and Transfer
Amendments and Waivers
Notices
Calculations and Certificates
Partial Invalidity
Remedies and Waivers
Counterparts
Third Party Rights
Governing Law
Enforcement of Rights
Jurisdiction
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