Subordination
/ˌsʌbɔːrdɪˈneɪʃən/
Definitions
- (n.) The condition of being legally or contractually dependent upon or inferior to another entity or authority.
The subordination of the tenant's rights to the lien of the mortgage is clearly stated in the lease agreement.
- (n.) The act of yielding or placing one debt or claim beneath another in priority, especially in secured transactions.
The lender agreed to a subordination of its security interest to the bank's loan.
Related terms
See also
Commentary
Subordination commonly appears in contract and secured transactions contexts, where priority among parties' rights or claims is critical.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.