Importance of Specific Provisions for Subordination and Pro-Rata Sharing

This chapter explores the importance of including specific provisions in loan documents related to subordination and pro-rata sharing. It highlights the need for explicit statements in the document to ensure certain rights are upheld, and emphasizes the distinction between subordination and the release of liens and guarantees. The chapter also discusses pro-rata sharing provisions and emphasizes the need for investors to be aware of these provisions when investing in a new deal.