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Simple English definitions for legal terms

subordination agreement

Read a random definition: Statute of Westminster the First

A quick definition of subordination agreement:

A subordination agreement is a contract that says if someone owes money to different lenders and they can't pay it all back, the lender who signed the subordination agreement will get paid first. This makes it less risky for the lender to loan money because they know they will get paid before anyone else. The borrower can then get more loans from other lenders who are willing to take on more risk, but will charge higher interest rates.

A more thorough explanation:

A subordination agreement is a legal contract that ensures that a senior debt is paid before any other "subordinated" debt in case the debtor goes bankrupt. This agreement is usually signed by the debtor and the original creditor when the debtor needs to take on more debt after having a previous loan.

For example, let's say a company has a loan from Bank A, and they need to take on more debt to expand their business. However, they cannot get another loan without the agreement of Bank A. Bank A will require the company to sign a subordination agreement, which guarantees that they will be paid before any other creditors if the company goes bankrupt. This ensures that Bank A is not taking on high risks.

Once the subordination agreement is signed, the company may be able to get other loans from creditors who are willing to give the risky loan because they can charge a much higher interest rate. This is because the other creditors know that Bank A will be paid first if the company goes bankrupt.

subordination | Subornation of perjury

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Dkk
19:42
Maybe, didnt happen last time.
19:42
it was hard to not improve it. google search was terrible due to the ads and seo cheaters with buzz words and alt text
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SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
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Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
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got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
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Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
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