subordinated debt

Definition

Debt that is either unsecured or has a lower priority than that of another debt claim on the same asset or property. also called junior debt.

Use subordinated debt in a sentence

The subordinated debt had a likelihood of nonpayment that was higher than our other debt so it was not even mentioned during the meeting.

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I wish that I could find a correct way to deal with my current major debt so that all I had left to worry about was the Subordinated Debt.

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Since they took out a second mortgage, they were adding subordinated debt to the bank. The first mortgage with the other bank help priority over the second.

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tier 3 capital shareholder loan