Turnover Provisions

Summary

This practice note discusses turnover provisions in intercreditor agreements. When a lender provides a credit facility to a borrower secured by a first priority security interest in collateral, that lender expects to receive the proceeds from any exercise of remedies against such collateral before the holder of a subordinate security interest in the same collateral. The same view may apply in some instances to a sale of such collateral outside the context of an exercise of remedies.