Subordination Law and Legal Definition
Subordination means an agreement to put a debt or claim which has priority in a lower position behind another debt, particularly a new loan. A property owner with a loan secured by the property who applies for a second mortgage to make additions or repairs usually must get a subordination of the original loan so the new loan has first priority. A declaration of homestead must always be subordinated to a loan.
A debt subordination agreement is a contract in which a junior creditor agrees that its claims against a debtor will not be paid until all senior indebtedness of the debtor is repaid. Under a general subordination agreement, a junior creditor agrees to subordinate its claim to all presently existing and future claims against the debtor. In a specific subordination agreement, a junior creditor subordinates its claim to a particular obligation of the debtor.
Legal Definition list
- Subordinate Legislation
- Suborbital Trajectory [Aeronautics and Space]
- Suborbital Trajectory
- Suborbital Rocket [Aeronautics and Space]
- Subordination Agreement
- Subordination Non-Disturbance and Attornment Agreement
- Subordination, Non-Disturbance and Attornment Agreement
- Subornation of Perjury