Standstill Period
A standstill period is a contractual window during which a junior creditor (commonly a mezzanine lender) is restricted from taking certain enforcement actions after a default, often to give the senior lender priority in exercising remedies. Commentary on mezzanine intercreditor structures describes standstill windows as a common negotiated feature, with timing dependent on the agreement's specific design.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Default/workout governance
- Property types
- Structured commercial/multifamily finance
In practice
Standstill interacts with cure rights: a meaningful cure right can functionally delay senior enforcement while the junior creditor cures or stabilizes the situation.
Related terms
Capital Stack and Structured Finance
- Capital Stack
- Common Equity
- Cure Right
- Intercreditor Agreement
- Mezzanine Debt
- Mezzanine Financing
- Preferred Equity
General information, not legal, tax or financial advice.