Common use of Priority Agreement Clause in Contracts

Priority Agreement. 2.1 The Bank’s Priority is £ [and the Lender’s Priority is £ ] (or any other Priority amount as agreed in writing between the Bank and the Lender) and, in addition, interest on that amount and expenses as secured by the Bank’s or the Lender’s Security. 2.2 The Bank’s Security will rank first in priority as a continuing security up to the Bank’s Priority. 2.3 [The Lender’s Security will rank second in priority as a continuing security without limit.] [The Lender’s Security will rank second in priority as a continuing security up to the Lender’s Priority.] 2.4 [The Bank’s Security will rank third in priority as a continuing security without limit.] 2.5 [If either the Bank or the Lender holds an effective fixed charge and the other a floating charge over the same asset or class of assets then the fixed charge will rank in priority to the floating charge without limit.] 2.6 The Bank and the Lender will hold on trust any net receipts from the enforcement of their Security or from an administrator or liquidator of the Owner in respect of their Security to give effect to the priorities under this deed. 2.7 The priorities above will not be affected by: 2.7.1 any fluctuations in the amounts secured by the Security, or any advances being made after the date of this deed; 2.7.2 the existence at any time of a credit balance on any account; or 2.7.3 the crystallisation of the Bank’s or Lender’s floating charge before the other’s.

Priority Agreement. 2.1 The Bank’s Priority is £ [and the Lender’s Priority is £ ] (or any other Priority amount as agreed in writing between the Bank and the Lender) and, in addition, interest on that amount and expenses as secured by the Bank’s or the Lender’s Security. 2.2 The Bank’s Security will rank first in priority as a continuing security up to the Bank’s Priority. 2.3 [The Lender’s Security will rank second in priority as a continuing security without limit.] [The Lender’s Security will rank second in priority as a continuing security up to the Lender’s Priority.] 2.4 [The Bank’s Security will rank third in priority as a continuing security without limit.] 2.5 [If either the Bank or the Lender holds an effective fixed charge and the other a floating charge over the same asset or class of assets then the fixed charge will rank in priority to the floating charge without limit.] 2.6 The Bank and the Lender will hold on trust any net receipts from the enforcement of their Security or from an administrator or liquidator of the Owner in respect of their Security to give effect to the priorities under this deed. 2.7 The priorities above will not be affected by: 2.7.1 any fluctuations in the amounts secured by the Security, or any advances being made after the date of this deed; 2.7.2 the existence at any time of a credit balance on any account; or 2.7.3 the crystallisation of the Bank’s or Lender▇▇▇▇▇▇’s floating charge before the other’s.