Today, it is very common if a creditor has multiple creditors. However, this can leads to disputes due to the right clash. This is why in this article we provide you the inter-creditor agreement templates to help you make guidance on how this conflict should be resolved.
The purpose of this agreement is to protect the right of the creditors and help each party solve the conflict. In the agreement, there will be an obligation and also the right of the loan transaction.
Components of Intercreditor Agreement Templates
It is designed to make your work on this easily with the complete elements, such as:
- Title and statement of the agreement – The parties that are included in the agreement is the senior and junior lenders.
- Preliminary statement – This section talks about the context of the obligations.
- The main stipulation in the agreement – This section talks about the main stipulation of the senior and the junior lenders. The stipulation includes the terms used, obligations, rights, provisions, agreements, terms of the agreements and also the miscellaneous provisions.
- Signatures – by signing this agreement, then the terms in the document becomes effective.
Tips On Writing The Intercreditor Agreement
To enhance legal writing, there are several ways you can follow, one of them is by hiring an attorney to help you learn the clauses and make the language clearer. But if you are so sure to draft this agreement, you can follow the steps below:
- Prepare the document you need – In this case, your writing should be consistent and organized. By doing this, you can place the necessary ideas into an important section so it is easier to understand.
- Use the simpler language – An agreement is about terms and conditions that should be understood by both parties. Therefore, void flowery language. Use simpler words without jargons that are not understandable. Legal jargon is allowed when it is necessary which are included by the definition too. As shown in our inter-creditor agreement templates. The writing tone should be straightforward and consistent.
- Choose the right verbs – In front of laws, the language and choice of words, including verbs are crucial because such things can lead to ambiguity. Most people lose in the court because the wrote the agreement with the blurry language. Avoid this! The experts mostly become careful with the choice of words which should be clear and understandable.
- Only use the active voice – The active voice is generally suggested because it represents the parties that are obligated to do it.
What Are The Templates We Provide?
There are so many types of templates that you can find on our website, such as:
- Bank Intercreditor agreement form – this is an agreement that is designed for the bank in which the debtor is required to sign the agreement when the individual has multiple creditors.
- Standard Intercreditor Form – this is another simpler intercreditor agreement templates that you can use for free. This is perfect for your lending business.
Intercreditor Agreement Templates Sample