Subordination Agreement
/ˌsʌbɔːrdɪˈneɪʃən əˈɡriːmənt/
Definitions
- (n.) A legal contract in which one debt or claim is ranked below another in priority for repayment or enforcement.
The lender required a subordination agreement to ensure their loan would be paid after the primary mortgage.
Forms
- subordination agreements
Related terms
See also
Commentary
Subordination agreements are often negotiated to clarify debt priority and can affect enforcement rights in insolvency or foreclosure.
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.