Draft the intercreditor or subordination deed
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Produce a first-draft intercreditor or subordination deed from the term sheet covering ranking, enforcement standstill, payment waterfalls and release mechanics.
- What the lawyer must review
- Check ranking against the actual security package and existing facilities
- Check the payment waterfall; an error is an enforcement failure
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes preparing preliminary structure or wording. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.
Forms and precedents for this task
| Form or precedent | Kind | AI use | Summary |
|---|---|---|---|
| Deed of subordination (shareholder or related-party loans behind a senior lender) | Deed | AI use Yellow | A three-party deed that postpones a shareholder or related-party loan to a senior facility: no payments except permitted payments, turnover of amounts received, no enforcement or security without consent, voting and proof in insolvency, and undertakings by the borrower. |
Signed-in accounts can read the full text of each one. All precedents.