1. An Intercreditor Deed and Deed of Priority tend to be used interchangeably in the industry as both types of document seek to rank creditors. However, the main difference between the two is that the former is more complex in material.
2. A Deed of Priority only seeks to rank secured debt providers to regulate the distribution of proceeds and enforcement of security. The Intercreditor Deed will seek to additionally regulate the creditors right to receive payment before any enforcement of security from a debtor and the creditors rights to enforce security over the assets of the debtor.
3. A Subordination Deed includes provisions where the junior creditor agrees not to be paid by the debtor until the senior creditor has been repaid in full. This deed will be used where the junior creditor does not have security from the debtor which means there is no need to establish a priority ranking for proceeds of enforcement of security.
For further information please contact Rima Sengupta, Senior Associate on 0203 827 6100 or email: firstname.lastname@example.org