Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Any first-lien lenders that permit a borrower to obtain second-lien financing will try to ensure that their interests are primary to those of the second-lien lender should the borrower file for bankruptcy or default. The relative positions of first and second-lien lenders are typically described in intercreditor, or subordination, agreements that generally subordinate the rights of the second-lien lender regarding the collateral and payments from the borrower. These agreements often feature stipulations restricting the second-lien lender’s rights in the event of borrower bankruptcy.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.