Where more than one creditor lends to the same borrower, their relative rights are set by agreement rather than by the timing of filings.

Lien subordination ranks the security interests. Debt subordination ranks payment rights, which is different and often more consequential.

Payment blockage. Junior creditors are typically barred from receiving payments during a default on senior debt, for a stated blockage period with limits on frequency. The definition of what triggers blockage is heavily negotiated.

Standstill. The junior creditor agrees not to exercise remedies for a period after default, allowing the senior lender to control enforcement.

Turnover. Payments received by the junior creditor in breach must be turned over, held in trust in the meantime.

Enforcement control. Who may foreclose, who conducts a sale, whether the junior may credit bid, and the junior’s obligation to release its lien on a senior-directed sale.

Bankruptcy provisions. Voting on a plan, consent to debtor-in-possession financing and to cash collateral use, waiver of adequate protection objections, and waiver of the right to object to a sale. Enforceability of some of these waivers is contested.

Amendments. Caps on how much the senior debt may be increased without junior consent, and limits on extending maturity or increasing pricing beyond stated thresholds.