Subordinated Loan Agreement

When a lender wants to sell your loan to another lender, they need a Subordinated Loan Agreement to spell out the terms. Or, if you are a junior creditor who wants to tempt a senior creditor into lending to a certain borrower, a Subordinated Loan Agreement could help, for example, by promising them first dibs on repayments.

Use the Subordinated Loan Agreement document if:

• You would like to induce a Senior Creditor to lend money to a particular Borrower which you have loaned money to as a Junior Creditor and are willing to subordinate your loans to Senior Creditor.
• You need to borrow money but the Lender is requesting a signed statement ensuring their own will have priority over other existing loans.
• You are lending money to a Borrower and want assurance that your loan will have priority over existing loans.