Intercreditor Issues: Impact of Select Recent Decisions on Intercreditor Rights

February 06, 2012
The growth of mezzanine and other types of subordinate commercial real estate lending during the last two decades was enabled in part by the relative standardization of the intercreditor arrangements governing the rights and obligations of senior and junior lenders. While case law interpreting common provisions in the common forms of intercreditor agreements in these transactions has been limited, a number of recent decisions following the liquidity crises have significantly contributed to the body of case law. This update examines certain of these recent cases and their potential impact on senior and junior lenders.