Intercreditor Agreement Wikipedia

The basic conditions of a credit agreement include the following provisions. Normally, a lead lender dictates the duration of the agreement. Therefore, if the junior lender does not negotiate properly, it can be a disadvantage. An acceptance agreement is an agreement between the project company and the buyer (the party that purchases the product/service that the project produces/provides). In the case of project financing, revenues are often contracted (instead of being sold on a market basis). The purchase agreement regulates the mechanism of price and volume of revenues. The objective of this agreement is to provide the project company with stable and sufficient revenues to settle its project debt obligation, cover operating costs and provide proponents with some necessary return.