Subordination Clause

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Subordination clause

A provision in a bond indenture that restricts the issuer's future borrowing by subordinating future lenders' claims on the firm to those of the existing bondholders.

A clause in some contracts for debt stating that in the event of bankruptcy or liquidation, the debt in the contract will take priority over all other debts. This protects the creditor in the event that the debtor defaults. It is most common in mortgages and bonds. See also: Absolute Priority Rule.

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No references found			An excerpt from this dialogue is as follows: John: So I need to ask that your Mortgage Deed include a standard Subordination Clause, whereby you agree to put the lien of your Mortgage behind that of the construction lender. Confessions of a Real Estate Entrepreneur by Haginas, Pete J., Jr. / Appraisal Journal Anticipating this behavior, the first creditor will either refuse to accept a subordination clause or will charge the borrower a premium adequate to compensate for the subsequent moral hazard. Protection for whom? efficient liquidation benefits creditors as a ... by Longhofer, Stanley D.; Peters, Stephen R. / Regulation This article examines the typical shopping center subordination clause and some common problems (and some suggested solutions) when a tenant, especially an anchor tenant negotiates a "so-called" subordination and non-disturbance agreement with a landlord's mortgagee. Troubled shopping center: tenant beware by Pack, Stuart M. / Real Estate Weekly			Subject Quote subject to Subject to a Subject to a Can Subject to a print/execution/trading Subject to Collection Subject to Mortgage Subject to Opinion Subject to Verification Subjective Probabilities sublease sublet submarket submittal notice subordinate Subordinate Bond Subordinate Financing Subordinated Subordinated Bonds subordinated classes Subordinated Debenture Subordinated Debenture Bond Subordinated Debt subordinated ground lease subordinated mortgage Subordination Clause Subordination Policy Subpart F Subperiod Return Subprime lending subprime loan Subprime market Subprime Meltdown Subprime Mortgage subrogation Subrogee Subrogor Subscribe Subscription Subscription Agreement Subscription Period Subscription Price Subscription Privilege Subscription Ratio Subscription Right Subscription Warrant Subsidiaria subsidiaria integral Subsidiaria totalmente propia Subsidiary Subsidio			subordinated debts subordinated ground lease Subordinated loan Subordinated loan subordinated mortgage Subordinated Securities Subordinated Security subordinately subordinately subordinately subordinateness subordinateness subordinateness subordinates subordinates subordinates subordinating subordinating subordinating subordinating conjunction Subordinating conjunctions subordination subordination subordination subordination Subordination (trait) Subordination (trait) Subordination agreement Subordination agreement Subordination Agreements Subordination Clause Subordination Clauses Subordination of Women Subordination Policy subordination to rules Subordination, Non-Disturbance and Attornment Subordination, Nondisturbance, and Attornment Subordinationism subordinations subordinations subordinations subordinations subordinative subordinative subordinative Subordinator (grammar) suborn suborn subornare subornation subornation subornation of perjury subornation of perjury subornations subornations subornative suborned suborned suborner suborner suborners

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