Deeds of priority or inter-ceditor deeds are agreements which are used when a borrower has more than one type of loan from different lenders and all of those lenders may have different rights secured against the same assets of the borrower.
- in practice, a deed of priority or inter-creditor deed is used to help establish the order of priority in which their respective security from the same debtor will rank and the respective rights which each will have in relation to the repayment of debts owed by that debtor;
- for example, a deed of priority will help set out which lender will have the right to enforce their debenture and be paid first, should the borrowers assets need to be sold;
- therefore, deeds of priority or an inter creditor deeds can be very important indeed.
However, they need to be carefully drafted and great care and attention taken to get them right. At Francis Wilks & Jones we have the expert team able to assist with this exercise and any other deed of priority enquiries.
Francis Wilks & Jones have a team with legal expertise on providing advice relating to deeds of priority or an inter-creditor deed. We are experts in all matters relating to deed of priority and inter creditor deeds and our expertise include drafting and negotiating the deed of priority or an inter-creditor agreement.