In December 2011 two industry associations, the Australian Banking Association (ABA) and the Australian Finance Industry Association (AFIA), jointly developed model subordination agreement documents.
With the Personal Property Securities Act 2009 (PPSA) significantly reforming commercial law across Australia, the ABA and the AFIA took the opportunity to offer to the banking and finance industry and its advisors the model documents as a way of improving efficiency of operations and reducing costs.
The model documents and the Information and Protocol for using the documents can be accessed below.
To correct some minor errors, the industry model Deed of Priority and Release and Undertaking have been updated. The Information and Protocols document has also been revised.
Updated versions of the documents have replaced the December 2011 versions.
The documents are:
- Information and Protocol – ABA and AFIA Industry Model Priority and Release Documents. This document sets out the status of the documents, their potential usage and protocols for their use.
- Priority Deed – Execution Pages for signing by the parties. This contains the specifics of the transaction. (editable format)
- Priority Deed – Operating Provisions. This contains standard terms which will apply when the model Priority Deed is used.
- Release and Undertaking to Amend Registration. (editable format)