Legal Definitions - subordinate

In legal contexts, the term subordinate can function as both an adjective and a verb, referring to something or someone that is lower in rank, importance, or authority, or the act of placing something in such a lower position.

• As an adjective, subordinate describes something that is of lesser rank, importance, or under the control of another. For example:

  • Imagine a large corporation where a regional sales manager reports directly to the national sales director. In this structure, the regional sales manager holds a subordinate position to the national sales director. This illustrates how one role is lower in the organizational hierarchy and subject to the authority of another.

  • Consider a situation where a state passes a new environmental protection law. A local city ordinance that conflicts with this state law would be considered subordinate to the state law. This means the state law takes precedence, and the local ordinance must comply with or yield to the higher authority of the state legislation.

• As a verb, to subordinate means to place something in a lower rank, class, or position, often by assigning it a lower priority. For example:

  • In a business acquisition, a buyer might have multiple outstanding debts. To secure new financing for the purchase, the buyer might agree with an existing lender to subordinate their current loan to the new acquisition loan. This action means the existing loan would be repaid only after the new acquisition loan is fully satisfied, effectively giving the new loan higher priority.