Senior mortgage bond

Senior mortgage bond

A bond that, in the event of bankruptcy, will be redeemed before any other bonds are repaid.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Senior Mortgage Bond

A bond secured by a mortgage on one or more properties that, in the event of bankruptcy and/or liquidation, has priority over other liabilities secured by the same mortgages. See also: Absolute Priority Rule, Second Mortgage.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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