¶¶Òõ¶ÌÊÓƵ

All Countries
Real Estate
Lien Subordination Agreement

Lien Subordination Agreement Template for Australia

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Lien Subordination Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Lien Subordination Agreement

"Need a Lien Subordination Agreement for a manufacturing company with two existing bank lenders, where the second-ranking creditor (holding security over equipment and inventory) agrees to fully subordinate their $2M security interest to the senior lender's new $5M facility closing in March 2025."

Celebrated by
Collaborations with
Investors
Document background
A Lien Subordination Agreement is a crucial document in secured lending arrangements where multiple creditors hold security interests over the same assets. This document is commonly used in Australia when a borrower has multiple secured creditors and needs to establish clear priority arrangements between them. The agreement ensures orderly enforcement of security interests and helps prevent disputes between creditors by clearly documenting their respective rights and priorities. It operates within the Australian legal framework, particularly under the Personal Property Securities Act 2009 (Cth), and may be required by senior lenders as a condition of providing financing. The document typically includes details of the existing security interests, subordination arrangements, payment waterfall provisions, and restrictions on the subordinated creditor's enforcement rights.
Suggested Sections

1. Parties: Identifies all parties to the agreement, including the senior creditor, subordinated creditor(s), and the debtor

2. Background: Recitals explaining the existing security interests, their registration details, and the purpose of the subordination arrangement

3. Definitions and Interpretation: Defines key terms used throughout the agreement and sets out interpretation principles

4. Agreement to Subordinate: Core provision establishing the subordination arrangement and ranking of security interests

5. Undertakings by Subordinated Creditor: Key promises by the subordinated creditor regarding their security interest and actions they will/won't take

6. Priority of Security Interests: Detailed provisions regarding the ranking of security interests and how proceeds will be distributed

7. Payments and Distributions: Rules governing payments to creditors and treatment of any distributions received

8. Duration and Termination: Specifies how long the subordination remains in effect and circumstances for termination

9. Further Assurance: Obligations to execute additional documents or take actions to give effect to the agreement

10. Notices: Procedures for giving notices under the agreement

11. General Provisions: Standard boilerplate provisions including governing law, jurisdiction, and amendment procedures

Optional Sections

1. Intercreditor Provisions: Additional provisions governing relationships between multiple creditors, used when there are more than two levels of security interests

2. Standstill Provisions: Specific restrictions on enforcement actions by subordinated creditors, used in more complex arrangements

3. Real Property Provisions: Special provisions for dealing with real property security interests, used when real property forms part of the security

4. Representation and Warranties: Additional confirmations by parties, used in more formal or complex arrangements

5. Assignment and Transfer: Provisions governing the transfer of rights under the agreement, used when parties want to specifically address transferability

6. Attorney Appointment: Appointment of senior creditor as attorney of subordinated creditor for specific purposes, used in more comprehensive arrangements

Suggested Schedules

1. Schedule 1 - Existing Security Interests: Details of all relevant security interests including registration numbers and dates

2. Schedule 2 - Secured Property: Description of the secured property/collateral covered by the security interests

3. Schedule 3 - Underlying Debt Documents: List and details of the underlying loan agreements or other debt documents

4. Schedule 4 - Form of Notice: Prescribed form for notices to be given under the agreement

5. Schedule 5 - Security Release Documents: Forms of documents required for releasing security interests if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions







































Clauses




























Relevant Industries

Banking and Financial Services

Real Estate

Construction

Manufacturing

Mining and Resources

Infrastructure

Agriculture

Commercial Property

Retail

Technology

Healthcare

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Corporate Banking

Loan Administration

Security Administration

Commercial

Risk Management

Corporate Advisory

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Finance Manager

Credit Manager

Risk Manager

Treasury Manager

Commercial Director

Security Trustee

Loan Officer

Corporate Banking Manager

Debt Restructuring Advisor

Insolvency Practitioner

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Lien Subordination Agreement

An Australian law agreement establishing priority arrangements between multiple secured creditors, where one creditor agrees to subordinate their security interest to another.

find out more

Lease Subordination Non Disturbance And Attornment Agreement

An Australian tri-party agreement establishing rights and obligations between landlord, tenant, and lender in a mortgaged property lease arrangement.

find out more

Lease Subordination Agreement

An Australian legal agreement that establishes the priority between a lease and a mortgage/security interest over a property, defining the relationship between landlord, tenant, and lender rights.

find out more

Deed Of Trust Subordination Agreement

An Australian legal document establishing priority arrangements between creditors regarding trust assets and debt obligations, with senior debt taking precedence over subordinated debt.

find out more

Deed Of Attornment

An Australian legal document that formalizes the acknowledgment and acceptance of a new party into an existing contractual relationship, typically used in property and financing arrangements.

find out more

Letter Of Subordination Of Debts

An Australian jurisdiction document establishing debt priority arrangements between senior and junior creditors, defining payment hierarchies and subordination terms.

find out more

Intercreditor And Subordination Agreement

An Australian law-governed agreement establishing priorities and relationships between different classes of creditors in a financing arrangement, including payment and enforcement rights.

find out more

Deed Of Subordination

An Australian law governed document that establishes priority rankings between different classes of creditors, subordinating junior debt to senior debt.

find out more

Non Disturbance Agreement

An Australian legal agreement ensuring tenant's lease rights are protected if a landlord defaults on their mortgage, maintaining the tenant's occupancy despite any foreclosure proceedings.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: /our-research
Oops! Something went wrong while submitting the form.

³Ò±ð²Ô¾±±ð’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ³Ò±ð²Ô¾±±ð’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our for more details and real-time security updates.

Read our Privacy Policy.