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Intercreditor Lien Priority

Draft Intercreditor Lien Priority Agreements in Minutes

14 minutes with CaseMark

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Upload your documents and get a finished work product in minutes. New accounts get $5 free to run their first skill.

14 minutes with CaseMark

What you'll need

  • Credit and Security Agreements
  • Deal Term Sheet

SOC 2 Type II · HIPAA compliant · $5 free credit

Workflow

Overview

CaseMark's Intercreditor Lien Priority skill automates the drafting of U.S. intercreditor agreements governing first lien and second lien creditor relationships over shared collateral. It produces comprehensive agreements covering lien subordination, standstill periods, enforcement control, payment waterfalls, turnover obligations, and bankruptcy provisions—all tailored to your specific deal terms.

Drafting intercreditor agreements is one of the most complex and time-intensive tasks in leveraged finance. Attorneys must carefully coordinate lien priority, standstill mechanics, payment waterfalls, turnover obligations, and bankruptcy provisions across multiple source documents—often under tight deal timelines. Missing a single critical clause can expose clients to significant financial risk.

CaseMark automates the heavy lifting of intercreditor agreement drafting by analyzing your credit documents and term sheets, then generating a comprehensive first lien/second lien agreement with all required provisions. Every key election is configurable, and a built-in checklist ensures nothing is missed—letting you focus on negotiation strategy rather than document assembly.

How it works

  1. 1. Upload your credit agreements, security documents, and deal term sheet

  2. 2. AI analyzes collateral scope, obligation definitions, and key elections from your documents

  3. 3. Review and customize standstill triggers, permitted payments, bankruptcy positions, and other deal-specific terms

  4. 4. Export the completed intercreditor agreement in your preferred format (DOCX, PDF)

What you get

  • Definitions and Construction

  • Lien Priority and Subordination

  • Enforcement Rights and Standstill

  • Payment Waterfall and Turnover

  • Bankruptcy and Insolvency Provisions

  • Amendments/Restrictions on Second Lien Documents

  • Representations, Warranties, and Covenants

  • Miscellaneous Provisions

  • Required Clauses Checklist

What it handles

  • Automated lien priority and subordination clauses with first lien absolute priority

  • Configurable standstill periods with customizable triggers and durations

  • Payment waterfall and turnover provisions with permitted payment elections

  • Comprehensive bankruptcy and insolvency provisions including DIP financing and 363 sale terms

  • Built-in required-clauses checklist ensuring no critical provisions are missed

  • Amendments and restrictions on second lien document modifications

Required documents

  • Credit and Security Agreements

    First lien and second lien credit agreements and security agreements defining the obligations and collateral scope

    .pdf, .docx

  • Deal Term Sheet

    Term sheet specifying parties, standstill periods, permitted payments, bankruptcy positions, and other key elections

    .pdf, .docx

Supporting documents

  • Existing Intercreditor Agreement

    Prior intercreditor agreement for refinancing or amendment scenarios to use as a baseline

    .pdf, .docx

  • Collateral Descriptions and Schedules

    Detailed collateral schedules identifying shared vs. excluded collateral

    .pdf, .docx

Why teams use it

Reduce intercreditor agreement drafting time from days to minutes with AI-powered automation

Ensure completeness with a built-in required-clauses checklist covering all critical intercreditor provisions

Customize every key election—standstill triggers, permitted payments, discharge definitions—directly from your term sheet

Produce market-standard bankruptcy provisions addressing DIP financing, 363 sales, and Section 510(a) subordination

Questions

What types of intercreditor structures does this skill support?

CaseMark's intercreditor drafting skill is designed for first lien/second lien shared collateral structures commonly used in leveraged finance transactions. It covers the full range of priority, enforcement, payment, and bankruptcy provisions needed for these arrangements.

Can I customize the standstill period and enforcement triggers?

Yes. CaseMark allows you to configure the standstill trigger (event of default notice vs. occurrence), the exact standstill duration in days, and whether second lien enforcement is permitted after the standstill expires. All key elections are fully customizable.

Does the output address bankruptcy and insolvency scenarios?

Absolutely. CaseMark generates comprehensive bankruptcy provisions covering DIP financing consent, cash collateral usage, Section 363 sale positions, plan voting restrictions, and 11 U.S.C. § 510(a) subordination enforceability—all critical for intercreditor governance in distressed situations.

How does CaseMark handle payment waterfall and turnover provisions?

CaseMark drafts detailed payment waterfall mechanics establishing the order of distribution from shared collateral proceeds, along with turnover obligations requiring second lien creditors to remit any improperly received payments to the first lien agent until full discharge.

Can I use this for refinancing or amendment scenarios?

Yes. CaseMark's intercreditor skill is suitable for new financings, refinancings, and renegotiations. You can adjust the discharge definition, permitted payment elections, and amendment restrictions to reflect the specific deal dynamics of your transaction.

Does the agreement include a completeness checklist?

CaseMark includes a built-in required-clauses checklist that verifies all critical provisions—absolute lien priority, subordination continuity, standstill mechanics, turnover obligations, and bankruptcy waivers—are present before you finalize the draft.

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