subordination agreement definition

subordination agreement

Formal document acknowledging that one party's claim or interest is inferior (junior) to that of the other party or parties. For example, a firm may agree to let a bank loan take precedence (seniority) over directors' or owners' loans to the firm. If such consent forms a part of a larger agreement, it is called a subordination clause.

subordination agreement is in the Banking, Commerce & Finance and Corporate, Commercial, & General Law subjects.

subordination agreement appears in the definition of the following term: subordination clause

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