subordinated

subordinated
+ subordination/subordinated
An arrangement where one creditor or group of creditors (the junior creditor(s)) agrees not to be paid by a borrower or other common debtor until another creditor or group of creditors (the senior creditor(s)) have been paid. Broadly, there are two types of subordination: structural (common in the UK and mainland Europe) and contractual (common in the US).
On a contractual subordination, loans are made to the same company but the senior creditor and junior creditor agree priority of payment by contract.
Structural subordination arises where the senior creditor lends to a company which is lower in the group structure than the company into which the junior creditor lends. Junior creditors as creditors of the holding company effectively rank behind creditors of the operating company (in which all of the assets are usually invested) because they are a creditor of a shareholder in the holding company.
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+ subordination/subordinated
USA
Also known as subordinated. The act of lowering the payment priority of a right or a claim with respect to another right or claim.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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