What Is Inter Creditor Agreement Upsc?

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What is an inter-creditor agreement?

An agreement among lenders, or classes of lenders, describing their respective rights and obligations with respect to the borrower and its assets.

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What is an inter-creditor agreement India?

An Intercreditor Agreement, commonly referred to as an inter-creditor deed, is a document signed between two or more creditors, stipulating in advance how their competing interests are resolved and how to work in tandem in service to their mutual borrower.

How do Intercreditor agreements work?

An intercreditor agreement is an agreement between two or more creditors of the same borrower. Each creditor has its own set of loan documents with the borrower but each creditor generally has interest in the same set of collateral or payment source.

What are some key considerations of an inter-creditor agreement?

Identity of Mezzanine Lender. Foreclosure of Pledged Equity Collateral. Cure Rights. Purchase Option. Consent Rights. Financing of Mezzanine Loan. Mezzanine Lender as “Affiliate” of Mortgage Borrower.

What is intercompany creditor?

Intercompany Creditor means an Obligated Party in its capacity of being owed sums by any other Obligated Party.

What is an ICA in lending?

Innovative Capital Advisors was formed in 2003 to offer investors access to a time tested and very desirable asset class: commercial mortgage loans. This asset class requires specialized knowledge, market access and experience to prudently originate and assess the quality of each individual loan opportunity.

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What is the difference between a subordination agreement and a intercreditor agreement?

Rather than a simple subordination by a subordinated creditor in favour of a senior creditor, an intercreditor agreement is usually a more complex agreement between two or more secured creditors, setting out the details of the relationship between them in relation to their common debtor.

What are the three types of creditors?

Personal creditors: These are friends or family you owe money. Secured creditors: These lenders have a legal right — often through a lien — to property you used as collateral to secure the loan. Unsecured creditors: A credit card issuer is a good example of this type of creditor.

Is intercreditor agreement a deed?

A contract, often a deed, which regulates the respective rights and ranking of two or more funders (often both debt and equity) in a financing.

What is a pari passu Intercreditor agreement?

First Lien Pari Passu Intercreditor Agreement means an agreement among each First Lien Representative and each First Lien Collateral Agent allocating rights among the various Series of First Lien Obligations.