Subordination

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Subordination

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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

subordination

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)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
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--Approximately $3.76 billion (pre-transaction) in outstanding state clean water and drinking water revolving funds (NYCMWFA projects - second resolution subordinated SRF revenue bonds) (the subordinate NYCMWFA SRF bonds).
(NYSE: AIG) has said that it will redeem all of its outstanding 8.000 percent series A-7 junior subordinated debentures due May 22, 2038, and all of its outstanding 8.625 percent series A-8 junior subordinated debentures due May 22, 2038 and along with the series A-7 junior subordinated debentures, on May 22, 2018.
American International Group Inc (NYSE:AIG) declared on Saturday that it will redeem all of its outstanding 8.000% series A-7 junior subordinated debentures due 22 May 2038 (ISIN No XS0365324838 (144A)/XS0365323608 (Reg S)) (the series A-7 junior subordinated debentures) and all of its outstanding 8.625% series A-8 junior subordinated debentures due 22 May 2038 (ISIN No XS0365317113 (144A)/XS0365314284 (Reg.
(NYSE: CIT) has announced the pricing of a public offering of USD 500 million aggregate principal amount of senior unsecured notes due 2021 (the "2021 Notes"), USD 500 million aggregate principal amount of senior unsecured notes due 2025 (the "2025 Notes" and, together with the 2021 Notes, the "Senior Notes") and USD 400 million aggregate principal amount of subordinated notes due 2028 (the "Subordinated Notes" and, together with the Senior Notes, the "Notes"), the company said.
The intent of the issuer's proposal is to convert the "plain vanilla" subordinated debt security into a Basel III-compliant Tier two capital instrument, keeping the same aforementioned ISIN number.
Moody's Investors Service has assigned a (P)Baa3 rating to the amended subordinated notes component of Macquarie Bank Limited's (MBL, A2/A2 stable, baa1 stable) existing USD 20 billion Rule 144A/Regulation S Medium-Term Note Programme.
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However, some disqualified capital must be deducted gradually, including subordinated bonds and deferred income-tax assets, inflicting the pressure of capital increment on some banks.
Fitch said the review is part of a broad review of Fitch-rated subordinated debts.
on Friday offered 103.2 billion yen in subordinated bonds to cover redemptions of earlier-issued straight and subordinated bonds.