A Wisconsin Security Interest Subordination Agreement is a legal document that outlines the priority of multiple security interests in collateral. It is commonly used in commercial transactions where multiple parties have a security interest in the same asset. Key terms: 1. Security Interest: Refers to a legal right held by a creditor to secure payment by taking possession of collateral in the event of default. 2. Subordination: The act of lowering the priority of one security interest in favor of another. 3. Collateral: Any asset or property that is pledged to secure the payment of a loan or debt. 4. Creditor: A person or entity that is owed money or has a claim against a debtor. Different types of Wisconsin Security Interest Subordination Agreements: 1. First Priority Subordination Agreement: This type of agreement establishes that one security interest will have priority over others in case of default. By entering into this agreement, the subordinate party agrees to be paid off only after the senior party's interest is satisfied. 2. Second Priority Subordination Agreement: This agreement gives priority to a different security interest, subordinating all others to it. The senior lender's interest will be satisfied first, followed by the interest of the second party. 3. Intercreditor Subordination Agreement: This type of agreement is used when there are multiple lenders involved. It establishes the priority of each lender's security interest and the order in which they will be repaid in the event of default by the borrower. 4. Subordinated Creditor's Agreement: In this agreement, a creditor voluntarily agrees to subordinate their rights to another creditor for a specified period or until a certain event occurs. This type of agreement is often seen when a subordinated lender agrees to allow a senior lender to refinance a loan. Overall, a Wisconsin Security Interest Subordination Agreement is a crucial legal tool to determine the priority of security interests held by different parties in collateral. It helps define the rights and obligations of each party involved, ensuring fairness and clarity in commercial transactions. The type of agreement required may vary based on the specific circumstances of the transaction.