An Indiana Security Interest Subordination Agreement is a legal document that outlines the relationship between two parties concerning the priority of security interests in collateral. This agreement allows one party to subordinate its security interest to another party, which means that the second party's security interest will have a higher priority in the event of default or bankruptcy. Under Indiana law, there are different types of Security Interest Subordination Agreements, depending on the specific circumstances and parties involved. These agreements are designed to protect the rights and interests of creditors, borrowers, and other relevant stakeholders. Some common types include: 1. Priority Subordination Agreement: This type of agreement is entered into when a creditor holding a higher-ranking security interest agrees to subordinate it to a lower-ranking creditor's security interest. It typically occurs when there are multiple creditors involved in a debtor's assets or collateral. 2. Intercreditor Agreement: This type of agreement is often used in situations involving multiple creditors with competing security interests. It establishes the hierarchy and priority of these interests while outlining the rights and obligations of each creditor. The agreement also clarifies the distribution of proceeds in case of default or bankruptcy. 3. Collateral Subordination Agreement: In this type of agreement, a third-party creditor agrees to subordinate its security interest in specific collateral to another creditor. This allows the second creditor to have a higher-priority interest over the specific assets, granting them a greater chance of recovering their investment. 4. Mortgage Subordination Agreement: This agreement is commonly used in real estate transactions when a property has multiple mortgages or liens. It allows a subsequent mortgage lender to assume priority over an existing mortgage lender, giving them the first right to the property's proceeds in case of foreclosure or default. It is important to note that the specific terms and provisions of an Indiana Security Interest Subordination Agreement may vary depending on the parties involved and the unique circumstances of each agreement. Consulting with legal professionals or using redrafted and customizable templates is crucial to ensure accuracy and compliance with Indiana's laws and regulations surrounding security interests and subordination agreements.