Also found in: Dictionary, Thesaurus, Financial, Encyclopedia, Wikipedia.


To put in an inferior class or order; to make subject to, or subservient. A legal status that refers to the establishment of priority between various existing liens or encumbrances on the same parcel of property.

A subordination agreement is a contract whereby a creditor agrees that the claims of specified senior creditors must be paid in full before any payment on a subordinate debt can be paid to the subordinate creditor.

A subordination clause in a mortgage is a provision that gives a subsequent mortgage priority over one that has been executed at an earlier date.


n. allowing a debt or claim which has priority to take second position behind another debt, particularly a new loan. A property owner with a loan secured by the property who applies for another loan to make additions or repairs usually must get a subordination of the original loan so the new obligation is in first place. A declaration of homestead must always be subordinated to a loan. (See: subordination agreement)

See: allegiance, array, bondage, conformity, order, servitude, subjection
References in periodicals archive ?
As indicated above, subordination of capital is viewed as an essential part of cooperative organization.
Part II focuses more on physicians' widening control and increased subordination of nurses from 1900 through the nineteen seventies, whereas Part III focuses on more recent years.
Gender, Sex, and Subordination is divided into three parts.
Selma Kent agreed to subordinate her lien and executed a subordination agreement.
The usual landlord-prepared form of shopping center lease provides for automatic subordination of the lease to the lien of any mortgage affecting the shopping center, whether the mortgage was executed prior or subsequent to the execution of the lease.