Lien Subordination Agreements

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This article explores important issues pertaining to the use of lien subordination agreements (also called intercreditor agreements) involving collateral governed by Article 9 of the Uniform Commercial Code (such as accounts, inventory, equipment, chattel paper, etc.). The article also describes some of the standard provisions which should be in a lien subordination agreement and is a good primer for loan officers and counsel.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Bennett Cohen, Cohen, Salk & Huvard, P.C. | Attorney Advertising

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