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Loan And Financing

Intercreditor Agreement (Lien Priority)

Drafting intercreditor agreements manually requires extensive research across LSTA templates, ABA guidelines, and legal databases to ensure proper lien priority and subordination provisions. Attorneys spend hours cross-referencing credit documents, verifying definitions, and ensuring compliance with industry standards while managing complex waterfall provisions and enforcement rights.

Automation ROI

Time savings at a glance

Manual workflow6.5 hoursAverage time your team spends by hand
With CaseMark12 minutesDelivery time with CaseMark automation
EfficiencySave 32.5x time with CaseMark

The Problem

Drafting intercreditor agreements manually requires extensive research across LSTA templates, ABA guidelines, and legal databases to ensure proper lien priority and subordination provisions. Attorneys spend hours cross-referencing credit documents, verifying definitions, and ensuring compliance with industry standards while managing complex waterfall provisions and enforcement rights.

The CaseMark Solution

CaseMark automates intercreditor agreement drafting by intelligently extracting obligations from your credit documents and integrating industry-standard provisions from LSTA, ABA, and authoritative legal sources. Generate comprehensive, market-standard agreements in minutes with proper lien priority structures, subordination terms, and enforcement provisions—all while maintaining full customization control.

Key benefits

How CaseMark automations transform your workflow

Reduce drafting time from 6+ hours to under 15 minutes with AI-powered automation

Automatically extract and define obligations from uploaded credit agreements using intelligent document analysis

Access integrated LSTA and ABA best practices with proper citations and legal authority

Ensure consistent lien priority and subordination language across all agreement sections

Generate market-standard waterfall provisions and turnover mechanics without manual research

What you'll receive

Introduction and Recitals
Definitions
Lien Priority and Subordination
Enforcement Rights and Remedies
Payments, Distributions, and Turnover
Representations and Warranties
Covenants
Miscellaneous Provisions

Document requirements

Required

  • First Lien Credit Agreement
  • Second Lien Credit Agreement

Optional

  • Security Agreements
  • Prior Intercreditor Agreements
  • Collateral Schedules

Perfect for

Commercial Finance Attorney
Banking & Finance Lawyer
Transactional Associate
Corporate Paralegal
In-House Counsel (Financial Institutions)
Loan Documentation Specialist

Also useful for

This workflow is applicable across multiple practice areas and use cases

Corporate Finance95% relevant

Corporate finance transactions frequently involve multiple layers of debt financing requiring intercreditor agreements to establish lien priority between senior and subordinated lenders.

Intercreditor agreements are fundamental to corporate finance structures involving leveraged buyouts, recapitalizations, and multi-tranche debt facilities where lien priority must be clearly established.

Private equity leveraged buyouts and venture debt transactions require intercreditor agreements to coordinate rights between senior lenders and mezzanine or subordinated debt providers.

PE transactions commonly use multiple debt tranches with different priority levels, making intercreditor agreements essential for defining creditor relationships and enforcement rights.

M&A transactions involving acquisition financing with multiple lender groups require intercreditor agreements to establish priority among senior secured, second lien, and mezzanine lenders.

Complex M&A deals often involve layered debt structures where intercreditor agreements govern the relationship between different classes of lenders financing the acquisition.

Bankruptcy proceedings require analysis and enforcement of intercreditor agreements to determine creditor priority, distribution rights, and enforcement limitations during reorganization or liquidation.

Intercreditor agreements are critical in bankruptcy contexts as they govern creditor rights, payment waterfalls, and lien priority that directly impact recovery and litigation strategy.

Financial Services72% relevant

Financial institutions must draft and review intercreditor agreements to comply with regulatory capital requirements and manage risk across different lending facilities.

Banks and financial institutions regularly use intercreditor agreements in syndicated lending and structured finance, requiring compliance with regulatory frameworks governing secured lending.

Frequently asked questions

Q

How does CaseMark handle complex lien priority structures?

A

CaseMark analyzes your uploaded credit agreements to identify first and second lien obligations, then automatically structures priority and subordination provisions based on LSTA standards. The platform ensures proper waterfall mechanics and enforcement rights are clearly delineated between lien holders.

Q

Can I customize the intercreditor agreement after CaseMark generates it?

A

Yes, absolutely. CaseMark provides a comprehensive first draft with all standard provisions, which you can fully edit and customize to meet specific deal requirements. The platform gives you a strong foundation while maintaining complete control over final terms.

Q

Does CaseMark include current LSTA and ABA guidelines?

A

Yes, CaseMark integrates current industry standards from LSTA intercreditor templates and ABA Commercial Finance Committee guidelines. The platform searches authoritative sources and includes proper citations to support the drafted provisions.

Q

What if my deal has unique collateral or multiple lien holders?

A

CaseMark's intelligent system adapts to complex structures by extracting specific collateral details from your uploaded documents. You can provide additional context about unique arrangements, and the platform will incorporate these details into the appropriate sections.

Q

How accurate are the definitions and legal terms in the generated agreement?

A

CaseMark pulls definitions directly from your credit documents and cross-references them with standard legal definitions from Thomson Reuters, Lexology, and other authoritative sources. This ensures consistency with your existing documentation while maintaining legal precision.

Q

Can CaseMark help with amendments to existing intercreditor agreements?

A

Yes, you can upload existing intercreditor agreements as optional documents. CaseMark will analyze the current terms and help you draft amendments or updated agreements that maintain consistency with the original structure while incorporating new provisions.

Q

How long does it actually take to generate a complete intercreditor agreement?

A

Most users generate a comprehensive, market-standard intercreditor agreement in 10-15 minutes. This includes uploading credit documents, reviewing extracted information, and receiving a fully formatted draft with all eight major sections and supporting citations.