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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 ?
According to the Court, US Airways "claim [ed] that a seniority system virtually always trumps a conflicting accommodation"; that the conflicting accommodation is necessarily "unreasonable"; and that these contentions are primarily based on the idea that the ADA "seeks only 'equal' treatment for those with disabilities.
In 1989, the Court considered discriminatory seniority systems in Lorance v.
As for the promotion aspect of the Yoshida School, it was replaced by the seniority system of promotion, which I examine using probit and logit analysis of the cabinets selected from selected Diets.
The disabled employee, however, is free to show that special circumstances warrant the requested accommodation because circumstances might alter the important expectations of a seniority system.
Reversing an en banc decision of the Ninth Circuit, the Court found that "the seniority system will prevail in the run of cases.
Both the UAW and the AFT have made inroads improving conditions for their members, and this summer, the AFT issued a set of standards for adjuncts, including equitable pay, office space, paid office hours, and a seniority system for job security.
The seniority system in this case was not in accordance with a collective bargaining agreement but was unilaterally imposed by the employer.
Airways had asked the Court to decide how the ADA resolves a conflict between the interests of a disabled worker who requests reassignment to a vacant position as a "reasonable accommodation" and those of more-senior workers who have the right to bid for the job under the company's seniority system.
In companies, on the other hand, the traditional seniority system and lifetime employment, which once provided job security for corporate employees, began to collapse.
I considered a wide variety of candidates without dwelling on the seniority system and determined that he would be able to implement reforms while tackling diplomatic issues,'' the foreign minister added.
The foreign minister said she will not rely solely on the seniority system, suggesting the next vice foreign minister could possibly have several years less experience than Nogami in terms of diplomatic career years.
And, sometimes, the legacy of girls' past exclusion results in fairly glaring present injustices--such as girls' softball teams being denied access to the best public playing fields because of a seniority system that gives preference to boys' baseball teams simply because they have been around longer.