Document

Reimbursement and Subrogation Agreement

Financing Document

A Reimbursement and Subrogation Agreement governs the consequences of payment under a lender-facing guarantee. It gives the guarantor a contractual reimbursement claim against the borrower and, to the extent of payment, access to the paid creditor's finance-document and security rights. It converts guarantee payment into an intercreditor-governed creditor position while preventing double recovery. Reimbursement, subrogation, assignment and indemnity are distinct techniques.

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