Pari Passu Law and Legal Definition

Pari passu is a Latin phrase that means "at the same time", and in usage often refers to treating things equally, without showing preferences. In the context of finance, it refers to a loan or investment having equal rights of payment, i.e., having the same level of seniority. In the context of bankruptcy, it refers to creditors receiving a pro rate share of payment, according to the amount of the claim.