The Loan Subordination Agreement is a crucial document in South African corporate finance, used when a company has multiple creditors and needs to establish a clear hierarchy of debt repayment. This agreement becomes particularly important in scenarios involving corporate restructuring, refinancing, or when new debt is being introduced alongside existing obligations. The document, governed by South African law, details how different classes of debt rank in priority, especially in events of default or insolvency. It typically includes comprehensive provisions about payment restrictions, enforcement rights, and the specific obligations of each party. The agreement is essential for protecting senior creditors' interests while allowing companies to maintain multiple layers of debt financing. It must comply with South African corporate and insolvency laws, particularly regarding business rescue proceedings and creditor rights.
Your data doesn't train Genie's AI
You keep IP ownership of your information
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
OR
Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
1. Parties: Identifies all parties to the agreement including the borrower, senior creditor(s), and subordinated creditor(s)
2. Background: Sets out the context of the existing loans and the purpose of the subordination arrangement
3. Definitions and Interpretation: Defines key terms including Senior Debt, Subordinated Debt, Enforcement Action, and other relevant concepts
4. Subordination: Core section establishing the subordination principles and ranking of debts
5. Restrictions on Subordinated Creditor: Details prohibited actions and limitations on the subordinated creditor's rights
6. Turnover of Receipts: Procedures for handling any payments received in breach of the subordination arrangements
7. Enforcement Actions: Specifies when and how enforcement actions can be taken by different creditors
8. Representations and Warranties: Standard representations from all parties regarding their capacity and authority
9. Duration and Termination: Specifies when the subordination arrangements will end or can be terminated
10. General Provisions: Standard boilerplate clauses including notices, amendments, governing law, and jurisdiction
1. Security Arrangements: Required when the subordination agreement needs to address existing or future security interests
2. Intercreditor Provisions: Needed when there are multiple creditors requiring detailed arrangements between them
3. Payment Blockage: Optional mechanism to block payments to subordinated creditors upon specified trigger events
4. Business Rescue Provisions: Specific provisions dealing with rights during business rescue proceedings under the Companies Act
5. Assignment and Transfer: Detailed provisions for transferring rights under the agreement, if transfers are to be permitted
6. Accession Mechanics: Required when new parties may need to join the agreement in the future
7. Further Subordination: Provisions allowing for additional subordination arrangements in the future
1. Details of Senior Debt: Schedule listing all senior debt facilities, amounts, and key terms
2. Details of Subordinated Debt: Schedule listing all subordinated debt facilities, amounts, and key terms
3. Form of Accession Deed: Standard form for new parties to accede to the agreement
4. Payment Waterfall: Detailed hierarchy of payments showing order of priority
5. Notice Details: Contact information and notice requirements for all parties
6. Form of Subordination Notice: Standard form for notifying third parties of the subordination arrangement
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Real Estate and Property Development
Mining and Resources
Manufacturing and Industrial
Infrastructure and Construction
Retail and Commercial
Technology and Communications
Healthcare and Pharmaceuticals
Energy and Utilities
Private Equity and Investment
Relevant Teams
Legal
Finance
Treasury
Credit Risk
Corporate Finance
Compliance
Company Secretariat
Debt Management
Corporate Banking
Risk Management
Relevant Roles
Chief Financial Officer
Finance Director
Treasury Manager
Corporate Lawyer
Legal Counsel
Debt Finance Manager
Credit Risk Manager
Investment Manager
Restructuring Officer
Company Secretary
Financial Controller
Loan Officer
Corporate Banking Manager
Debt Restructuring Specialist
Business Rescue Practitioner
Find the exact document you need
Employee Loan Contract
A South African law-governed agreement establishing terms for an employer-provided loan to an employee, including repayment through salary deductions.
Download
Loans With Debt Agreement
A South African law-governed agreement combining loan provisions with debt arrangements, compliant with the National Credit Act and related legislation.
Download
Take Over Car Loan Payments Contract
A South African law-governed agreement transferring vehicle loan payment obligations from an original borrower to a new borrower, with lender consent.
Download
Repayment Of Debt Agreement
A South African law-governed agreement that formalizes debt repayment terms between creditor and debtor, ensuring compliance with local credit legislation.
Download
Cellphone Loan Agreement
South African law-compliant agreement for financing mobile devices, covering loan terms, device ownership, and regulatory requirements.
Download
Employer Loan To Employee Agreement
South African law-governed agreement establishing terms for an employer-provided loan to an employee, compliant with the National Credit Act and employment legislation.
Download
Friendship Loan Agreement
A South African legal document formalizing loan arrangements between friends or family members, establishing clear terms while maintaining personal relationships.
Download
Personal Loan Letter Between Friends
A South African legal document formalizing a personal loan agreement between friends, outlining loan terms and conditions while maintaining compliance with local legislation.
Download
Peer To Peer Lending Agreement
South African-compliant agreement establishing terms for peer-to-peer lending between parties, including loan details, repayment terms, and regulatory requirements.
Download
Simple Interest Loan Contract
A South African law-governed loan agreement with simple interest terms, compliant with the National Credit Act and related legislation.
Download
Revolving Credit Contract
A South African law-governed agreement establishing a revolving credit facility between a credit provider and borrower, compliant with the National Credit Act.
Download
Loan Car Form
A South African law-compliant agreement governing the temporary loan of a vehicle between parties, outlining terms, conditions, and responsibilities.
Download
Family Member Promissory Note
A South African legal document formalizing loan agreements between family members, establishing terms and conditions while ensuring compliance with local lending and tax regulations.
Download
Vendor Finance Loan Agreement
A South African law-governed agreement establishing terms for vendor-provided financing for goods or services purchase, compliant with local credit and banking regulations.
Download
Overloan Agreement
A South African law-governed agreement that documents the extension of credit beyond an existing loan facility's limit, setting out terms for the increased borrowing amount.
Download
Acknowledgement Of Debt Agreement
A South African legal document where a debtor formally acknowledges their debt obligation and agrees to specific repayment terms under South African law.
Download
Facility Loan Agreement
A South African law-governed agreement establishing terms for a loan facility, including lending conditions, repayment terms, and security arrangements.
Download
Overagreement
A South African law-governed master agreement that provides an overarching framework for multiple sub-agreements between parties.
Download
Inter Corporate Loan Agreement
A South African law-governed agreement establishing loan terms between corporate entities, including financial terms, security, and compliance requirements.
Download
Subordinated Loan Agreement
South African law-governed agreement establishing terms for subordinated debt, including ranking provisions and payment conditions.
Download
Work Loan Agreement
A South African agreement combining employment terms with loan provisions, governed by national credit and employment legislation.
Download
Peer To Peer Lending Contract
South African law-compliant agreement for direct lending between parties, incorporating National Credit Act requirements and essential lending terms.
Download
Interest Loan Agreement
A South African law-governed agreement establishing terms for an interest-bearing loan, compliant with the National Credit Act and related legislation.
Download
Letter To Borrow Money From Friend
A South African legal document formalizing a personal loan agreement between friends, including loan terms and repayment conditions while complying with local legislation.
Download
Student Loan Agreement
South African law-governed agreement establishing terms for student financial assistance, compliant with National Credit Act and related legislation.
Download
Simple Loan Application Form
South African loan application form compliant with NCA, POPIA, and FICA, designed for gathering borrower information and obtaining necessary consents.
Download
Private Lending Term Sheet
A South African law-governed preliminary document outlining key terms and conditions for a private loan agreement, serving as the basis for detailed loan documentation.
Download
Personal Loan Receipt
A South African legal document acknowledging the disbursement of a personal loan and its key terms, compliant with the National Credit Act.
Download
Loan Agreement With Guarantor
A South African law-governed agreement establishing loan terms between lender and borrower, secured by a third-party guarantor's commitment to ensure repayment.
Download
Investment Loan Contract
A South African law-governed agreement establishing terms for an investment loan, including loan details, security arrangements, and compliance with local financial regulations.
Download
Facility Agreement
A South African law-governed agreement establishing terms and conditions for a lending facility, including loan amount, interest, repayment terms, and security arrangements.
Download
Employee Laptop Loan Agreement
A South African law-governed agreement setting out terms for loaning company laptops to employees, including usage, maintenance, and return conditions.
Download
Car Payment Plan Agreement
A South African law-compliant agreement outlining terms and conditions for vehicle purchase through structured payments, incorporating National Credit Act requirements.
Download
Borrowing Form
A South African law-compliant document that establishes legally binding terms for a loan between a credit provider and borrower, incorporating National Credit Act requirements.
Download
Simple Equipment Borrowing Agreement
A South African law-compliant agreement establishing terms and conditions for temporary equipment loans between parties.
Download
No Loan Agreement
A South African legal document that formally establishes and confirms the absence of any loan relationship between parties.
Download
International Loan Agreement
A South African law-governed agreement for cross-border lending transactions, establishing terms for international loans while ensuring compliance with local regulations.
Download
Inter Corporate Deposit Agreement
A South African law-governed agreement regulating corporate deposit arrangements between companies, including terms for deposit placement, interest, and repayment.
Download
Fixed Sum Loan Agreement
A South African law-governed agreement establishing terms for a fixed sum loan, compliant with the National Credit Act and related regulations.
Download
Deed Of Assignment Loan Agreement
A South African law-governed agreement transferring rights and obligations under an existing loan from one lender to another, including associated terms and conditions.
Download
ұԾ’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; ұԾ’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
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)