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The order of repayment. In the event of bankruptcy, senior debt must be repaid before subordinated debt is repaid.

Absolute Priority

A rule stating that, in liquidation, certain creditors must be satisfied in full before any other creditors receive any payments. That is, in the liquidation of a company, the absolute priority rule states that holders of secured debt must be paid before holders of unsecured debt. Holders of unsecured debt have precedence over preferred shareholders, and, finally, preferred shareholders must be satisfied before common shareholders.


The condition or status of a security that has priority over other securities by the same issuer with respect to the payment of income (that is, interest or dividends) and repayment of principal. As an example, for the same issuer, bonds have seniority over preferred stock and preferred stock has priority over common stock. See also junior security.
References in periodicals archive ?
The sources further said that the seniority list has been issued after absorbing many deputationists in the civic agency in violation of set rules, which bars permanent absorption of deputationists, unless absolutely necessary.
This is the same approach found to be fair in the Frontier seniority integration and the Republic pilots' arbitration award.
Earlier, concluding his arguments, the petitioner\'s counsel contended that seniority of the judges has to be determined from the date of their permanent appointment and oath-taking rather than from the date of their appointment as an additional judge.
Since the savings would help decrease the city's operating deficit of $33 million, restoring seniority days would just draw out the deficit problem.
The Committee will prepare a cadre-wise single and unified provisional seniority within 15 days and seek objections, if any, from the individual employee in next 15 days, before finalizing the same.
And the Los Angeles Unified School District recently agreed to limit the use of seniority in layoff determinations as part of a settlement in a lawsuit brought by the American Civil Liberties Union (ACLU).
The reassignments based on seniority are a part of contract language between the district and the teachers union.
First, estimated returns to seniority should become less negative the more fully the productivity is measured.
Therefore, they have a right to return to a classroom with seniority that does not correspond to years spent actually teaching children.
Furthermore, the court saw no reason to distinguish tenure rights from other ones, such as seniority or litigation rights, when those rights are relinquished to receive severance pay The taxpayers appealed the decision to the Sixth Circuit Court of Appeals where this case was consolidated with the IRS's appeal of the Eastern District Court's decision.
Except for the Chief Justice, Supreme Court Justices always sit and stand by seniority (length of service), alternating to the right and left of the Chief.
The employer must first consider placement in the job the employees would have held had they remained continuously employed, provided the employees are qualified for a position of like seniority and pay, or if not qualified for such a position, in the position the employees occupied before deployment or one of like seniority and pay.