Subordinated Debt

A dividend that is accrued and paid on a company's preferred shares. In the event that a company is unable to pay all dividends, claims to preferred dividends take precedence over claims ...

A security that ranks lower than other securities in regards to the owner's claims on assets and income in the event of the issuer becoming insolvent.

A suppplemental loan with a maturity that is the same as the senior, or original, loan. Coterminous is most often used to describe mortgage loans, such as those for residential and ...

A security (usually debt) that, in the event the issuer goes bankrupt, must be repaid before other creditors receive any payment.

A loan or security that ranks above other loans or securities with regard to claims on assets or earnings. Also known as a senior security.

A legal agreement which establishes one debt as ranking behind another debt in the priority for collecting repayment from a debtor. The priority of debts is extremely important if the ...

A type of subordinate mortgage made while an original mortgage is still in effect. In the event of default, the original mortgage would receive all proceeds from the liquidation of the ...