Cession of Priority of Rank Agreement Template

This cession of priority of rank agreement template has 3 pages and is a MS Word file type listed under our finance & accounting documents.

Sample of our cession of priority of rank agreement template:

CESSION OF PRIORITY OF RANK AGREEMENT This Cession of Priority of Rank Agreement (the "Agreement") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the "Creditor"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [COMPANY NAME] (the "Debtor"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS [YOUR COMPANY NAME] are or will be creditors of [COMPANY NAME] (the "Debtor"); WHEREAS the Debtor has granted to the Bank a hypothec on movables (the "Bank Security"), dated [DATE], which hypothec is to be registered forthwith at the [SPECIFY COUNTRY REGISTER] of the State/Province of [STATE/PROVINCE] (the "Register") and charges all of the present and future Claims, Property in Stock, Intellectual Property and rights, title and interest to any investment tax credits of the Debtor (collectively, the "Property") (as each such capitalized expression is defined in the Bank Security); WHEREAS the Debtor has granted to the Creditor a movable hypothec on the universality of all its equipment assets, registered at the Register on [DATE] under number [NUMBER] (hereinafter referred to as the [SPECIFY]); and WHEREAS the Creditor has agreed, subject to the provisions hereof, to grant priority of rank and subordinate its rights under the Creditor Security with respect to the Property only to and in favor of the Bank Security so that the hypothecs and other rights created under the Bank Security shall have preference and priority over the hypothecs created in favor of the Creditor under the terms of the Creditor Security with respect to the Property only. THEREFORE, THE PARTIES HAVE AGREED AS FOLLOWS: The preamble shall form an integral part hereof. The Creditor hereby cedes and grants priority over the [SPECIFY], with respect to the Property only, to and in favor of the Bank so that the Bank Security shall be deemed, for all legal purposes, to have been executed and registered at the Register before the execution and registration of the [SPECIFY].