Document background
The Subordination Deed of Trust is essential in complex financing arrangements where multiple creditors hold security interests over the same assets. This document, governed by Canadian law, establishes a clear hierarchy of claims and creates a trust structure to manage these arrangements. It is particularly useful in scenarios involving senior and junior debt, project financing, or restructuring situations. The deed includes comprehensive provisions covering the subordination arrangements, trustee powers, enforcement mechanisms, and distribution of proceeds. It must comply with both federal and provincial Canadian legislation, including property law, trust law, and secured transactions regulations. The Subordination Deed of Trust is commonly used alongside facility agreements, security documents, and intercreditor arrangements to create a complete security package.
