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An Intercreditor Agreement sets out the rights and priorities between different lenders who have provided loans to the same borrower. In Singapore's financial landscape, these agreements are especially common when companies take loans from multiple banks or when there's a mix of senior and junior debt.

The agreement spells out crucial details like who gets paid first if the borrower defaults, which lender can take enforcement action, and how collateral is shared. For example, under Singapore's banking regulations, senior lenders typically get repayment priority over subordinated lenders, with specific terms defining how security interests are managed and when standstill periods apply.

Consider implementing an Intercreditor Agreement when your company takes loans from multiple lenders in Singapore. This becomes especially important for complex financing structures, such as when combining bank loans with mezzanine financing, or when bringing in new lenders alongside existing ones.

The timing is critical - put this agreement in place before finalizing multiple loan facilities. This prevents future disputes by clearly establishing payment priorities, voting rights, and enforcement procedures upfront. For companies in Singapore's regulated industries like real estate or manufacturing, having clear lender hierarchies helps maintain compliance with MAS guidelines on debt structuring and security arrangements.

• Primary-Secondary Intercreditor Agreement: Sets clear hierarchy between main bank lenders and secondary financiers, common in Singapore's syndicated loans
• Pari Passu Agreement: Establishes equal ranking among multiple lenders, typically used in club deals or project financing
• Senior-Mezzanine Structure: Defines rights between senior bank debt and mezzanine financing, popular in Singapore's real estate development projects
• Multi-Tiered Agreement: Manages complex arrangements with multiple debt levels, often seen in large corporate restructurings

• Senior Lenders: Usually major banks or financial institutions in Singapore who hold first-ranking security and primary repayment rights
• Junior Lenders: Mezzanine financiers, private credit funds, or subordinated debt providers who accept lower priority in exchange for higher returns
• Corporate Borrowers: Companies seeking multiple sources of financing, often in sectors like real estate or manufacturing
• Legal Counsel: Singapore-qualified lawyers who draft and negotiate the agreement terms, ensuring MAS compliance
• Security Trustees: Entities holding security on behalf of multiple lenders, managing enforcement rights per the agreement

• Loan Details: Gather all existing and proposed loan agreements, including amounts, interest rates, and security arrangements
• Lender Information: Document each lender's priority ranking, security rights, and enforcement powers under Singapore law
• Security Structure: Map out all existing securities, their registration status with ACRA, and proposed sharing arrangements
• Payment Mechanics: Define the payment waterfall, including how proceeds from enforcement will be distributed
• Enforcement Rights: Specify standstill periods, voting thresholds for enforcement actions, and buyout rights
• Documentation Review: Our platform generates comprehensive agreements tailored to Singapore's legal requirements, ensuring all key elements are properly addressed

• Parties and Definitions: Clear identification of all lenders, borrowers, and security trustees, with defined roles and hierarchy
• Payment Provisions: Detailed waterfall structure specifying payment order and distribution mechanics
• Security Sharing: Terms for sharing, ranking, and enforcing security interests under Singapore's Security Interests Act
• Enforcement Protocol: Standstill periods, voting thresholds, and enforcement procedures aligned with MAS guidelines
• Dispute Resolution: Singapore law as governing law, with jurisdiction clauses for local courts or arbitration
• Amendments Process: Clear procedures for modifying agreement terms with required consent thresholds
• Termination Rights: Specific circumstances triggering agreement termination or lender exit rights

An Intercreditor Agreement differs significantly from a Bond Issuance Agreement in several key aspects, though both deal with debt arrangements in Singapore's financial markets. While both documents govern lending relationships, they serve distinct purposes and operate under different legal frameworks.

• Primary Purpose: Intercreditor Agreements manage relationships between multiple lenders, while Bond Issuance Agreements establish terms between a single issuer and bondholders
• Party Structure: Intercreditor Agreements involve multiple direct lenders with different priorities, whereas Bond Issuance Agreements typically involve one issuer and many identical-ranking bondholders
• Enforcement Mechanics: Intercreditor Agreements focus on coordinating enforcement rights and payment priorities, while Bond Issuance Agreements primarily detail repayment terms and bondholder rights
• Regulatory Framework: Bond Issuance Agreements must comply with MAS securities regulations, while Intercreditor Agreements focus on contractual priorities under Singapore's general contract law