Glossary

Deed of priority

A deed of priority is a contract between lenders that fixes who ranks first over shared security — the referee between competing charges.

2 min read

Ranks lendersOver same assets

First / second chargeEnables extra borrowing

Definition

A deed of priority is an agreement among lenders that sets the ranking of their security over the same asset — confirming, for example, that one holds the first charge and another a second.

In plain terms

It stops two lenders fighting over the same collateral. Where an existing lender has an all-assets debenture, a new lender often needs one to release part of the security.

Why it matters for your company

A deed of priority (or a lender’s negative pledge waiver) is often the practical key to raising additional finance against already-charged assets. See intercreditor agreements.