Step-in rights
Step-in rights let a lender, or a party it appoints, take over a borrower’s role under a key contract after a default, curing the problem and keeping the contract alive instead of letting it terminate.
Where a GPU lender needs step-in rights
| Colocation agreement | Take over the space, power and remote hands |
| Offtake agreement | Assign the customer contract to a substitute operator |
| Operations | Run the cluster through a named backup operator |
From our GPU loan default playbook.
How it works
Written into the contracts that keep the cluster earning. A collateral access agreement among the lender, the borrower and the colocation provider lets the lender, or an operator it names, take over the colocation contract without the borrower’s fresh consent (GPU loan default playbook).
Notice, cure, take over. The provider notifies the lender of a default within the time the agreement sets (2 days in one filed example), the lender cures the invoice so the power stays on, then steps in or hands the contract to a named operator (GPU loan default playbook).
Offtakers use the same tool. If CoreWeave becomes insolvent, OpenAI can require it to assign their contract to a substitute operator within two business days.
What lenders check
After a bankruptcy petition, self-help stops: no remote shut-off, no cage lockout. Rights agreed in advance, and a backup operator ready to use them, are what keep the offtaker served and paying.
Get them while the borrower is still negotiating the colocation contract. Once it is signed, the provider has little reason to give them up, along with its lien on customer equipment.
Discuss a transaction
Send us the equipment list and the loan or lease you have in mind. We will come back with an indication and the questions we would need answered.
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