Subordination Agreement
type: Class
subclass of: R7ddsah86bL3tQ5OmO9B7PB
definition: A "Subordination Agreement" is a contractual arrangement where a creditor agrees to rank its claim on a debtor's assets below the claims of one or more other creditors. This legal document outlines the conditions and circumstances under which the subordinated creditor will be repaid, typically in the event of a liquidation, default, or insolvency of the debtor.