---
title: "Draft the intercreditor or subordination deed"
url: "https://ailawframework.com/practice/banking-and-finance/draft-the-intercreditor-or-subordination-deed"
type: "task"
site: "AI Law Framework"
id: "A3-T1-R11"
practice_area: "Banking & Finance (Lending, Securities, Project Finance)"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Draft the intercreditor or subordination deed

> Produce a first-draft intercreditor or subordination deed from the term sheet covering ranking, enforcement standstill, payment waterfalls and release mechanics.

Canonical page: https://ailawframework.com/practice/banking-and-finance/draft-the-intercreditor-or-subordination-deed  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Banking & Finance (Lending, Securities, Project Finance)](https://ailawframework.com/practice/banking-and-finance.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| 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 / versions | 1 jurisdiction versions below |

## Checking plan

**Lawyer review required**

The responsible lawyer reviews the work against the instructions, sources and intended use.

- What the AI does: Potential support includes preparing preliminary structure or wording. Confirm the tool’s capability and permitted scope.
- What the lawyer does: Set the scope, verify the evidence, resolve exceptions and approve the final output for its intended use.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Suggested checking approach based on the task guidance. Complete the assessment for the actual tool, information and jurisdiction.
- Why: The plan reflects the described work and review requirements. Policy colours are not used to determine permission or checking.

## Checks the lawyer makes

1. Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
2. Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
3. Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
4. Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
5. Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.

## Notes

- Confirm the required checking with the responsible lawyer before work starts. The checking approach does not establish permission to use AI.

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Deed of subordination (shareholder or related-party loans behind a senior lender)](https://ailawframework.com/precedents/banking-and-finance/deed-of-subordination.md) | Deed | 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… |

Signed-in accounts can read the full text of each one.

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/banking-and-finance/draft-the-intercreditor-or-subordination-deed/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*