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Deed Of Trust Subordination Agreement Template for England and Wales

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Key Requirements PROMPT example:

Deed Of Trust Subordination Agreement

"Need a Deed of Trust Subordination Agreement to establish priority between ABC Bank plc as senior lender and XYZ Finance Limited as junior lender, relating to security over commercial property at 123 High Street, London, with completion required by March 2025."

Document background
A Deed of Trust Subordination Agreement is utilized when multiple creditors hold security interests over the same assets and need to establish a clear priority structure. This document, governed by English and Welsh law, formalizes the arrangement whereby junior creditors agree to subordinate their claims to those of senior creditors. It typically includes detailed provisions about payment priorities, enforcement rights, and turnover obligations. The agreement is particularly crucial in complex financing arrangements where multiple layers of debt exist.
Suggested Sections

1. Parties: Identification of all parties including Senior Creditor, Junior Creditor, and Borrower

2. Background: Recitals explaining existing security arrangements and purpose of subordination

3. Definitions: Key terms including Senior Debt, Junior Debt, Security Documents

4. Agreement to Subordinate: Core terms establishing priority of security interests

5. Turnover Provisions: Obligations regarding receipt and handling of payments

6. Enforcement: Rights and restrictions regarding enforcement of security

Optional Sections

1. Further Assurance: Additional actions parties may need to take, used when complex security arrangements exist

2. Assignment: Terms for transfer of rights, used when transferability is anticipated

3. Costs and Expenses: Allocation of costs, used when significant expenses are expected

Suggested Schedules

1. Schedule of Existing Security: Details of all existing security interests and their registration

2. Form of Accession Deed: Template for additional parties to join the agreement

3. Priority Arrangements: Detailed mechanics of payment priorities and waterfall provisions

Authors

Alex Denne

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

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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Law of Property Act 1925: Primary legislation governing property law in England and Wales. Key sections cover legal estates and interests in land, requirements for creation of trusts of land, and formalities for deeds.

Trustee Act 2000: Core legislation defining trustee's statutory powers and duties, investment powers, and required standard of care for trustees.

Land Registration Act 2002: Legislation governing requirements for registration of interests in land, priority of interests, and notice requirements.

Deed Requirements: Legal requirements for valid deeds including: must be in writing, must be clear it is intended to be a deed, must be properly executed, and must be delivered.

Trust Law Principles: Fundamental principles including the three certainties (intention, subject matter, objects), fiduciary duties, and trust powers and limitations.

Contract Law Principles: Essential elements including consideration, capacity of parties, and intention to create legal relations.

Financial Services and Markets Act 2000: Regulatory framework relevant when financial institutions are involved in the trust subordination agreement.

FCA Regulations: Financial Conduct Authority regulations that may apply when financial institutions are party to the agreement.

Mortgage Regulations: Specific regulations governing mortgage arrangements, particularly relevant if the trust involves residential property.

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

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