subordinate

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Related to subordination: Subordination agreement, Subordination clause

Subordinated

Describing a class of security that, in the event of liquidation, is prioritized lower than other classes of security. For example, a subordinated security may be an unsecured loan, which has no collateral. Should the issuer be liquidated, all secured bonds and debts must be repaid before the subordinated security is repaid. A subordinated security carries higher risk but also pays higher returns than other classes. See also: Junior Debt.

subordinate

To agree to place one's mortgage or other interests in a junior position relative to another. See subordinated ground lease and subordinated mortgage.

References in periodicals archive ?
Because patronage distributions of net earnings are based upon the patronage business done by the members with Corp P, the principle of subordination of capital is not violated.
The authors note that "some nurses even now seem to be caught in the traditional subordination of women and exhibit little understanding of their own subjugation.
Gender, Sex, and Subordination is a much better book than its conclusion would suggest.
Chase claimed all of the $300,000 surplus money, since its initial $100,000 mortgage was placed on the property before Selma Kent docketed her $408,000 judgment and in addition, the remaining mortgages of Chase were superior to the claim of Selma Kent because of her subordination agreement, under which her judgment lien became secondary to the new Chase mortgage.
These days, however, tenants must consider the risk of entering into a lease without providing for something more than the standard subordination clause without modification.
50% subordination provided by classes M-1, M-2, M-3, M-4, M-5, M-6, and B, as well as initial overcollateralization (OC) and monthly excess interest.
70% subordination provided by classes M-8 through M-11, monthly excess interest and initial OC.
30% subordination of classes M-1 through M-8, class B, and target overcollateralization (OC) of 1.
25% subordination provided by classes M-1, M-2, M-3, M-4 and M-5, initial overcollateralization (OC), and monthly excess interest.
50% subordination provided by classes M-1 through M-7, B-1 and B-2, monthly excess interest, and overcollateralization (OC) starting at 0.
70% subordination provided by classes M-1 through M-12 certificates, monthly excess interest, and initial overcollateralization (OC) of 0.
50% subordination provided by classes M-1 through M-10, monthly excess interest and initial overcollateralization (OC) of 0.