Cure Right
A cure right is a negotiated right allowing a mezzanine or other junior creditor to cure specified defaults under senior obligations, typically to protect the junior position from being wiped out by senior enforcement. Legal and market commentary on mezzanine intercreditor design highlights cure rights as a key subordinate-lender protection that can affect remedy timing.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Default/workout
- Property types
- Structured commercial/multifamily finance
In practice
Cure rights usually distinguish monetary vs non-monetary defaults and can include extensions conditioned on diligent pursuit of cure.
Related terms
Capital Stack and Structured Finance
- Capital Stack
- Common Equity
- Intercreditor Agreement
- Mezzanine Debt
- Mezzanine Financing
- Preferred Equity
- Standstill Period
General information, not legal, tax or financial advice.