Business and Personal Finance Dictionary

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• SUBORDINATE, SUBORDINATED, SUBORDINATION
  
  Debts or claims that have a lower status or priority than other debts or claims are subordinate. For example, creditor A may agree in a subordination agreement to have its claims on the cash flow or on the assets of a borrower lower in priority than (i.e., subordinate to) the claims to that cash flow or collateral by creditor B. In finance and accounting, the term also refers to debts that include provisions making them subordinate to other liabilities. For example, a bond issue may, by contractual agreement, be subordinate to all other bonds issued by a company.
  
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