Legalese Dictionary

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Definition for: "Subordination"

A lien or claim that is weaker than another lien or claim, and admittedly will be honored only after the stronger lien or claim has been satisfied.

n. allowing a debt or claim which has priority to take second position behind another debt, particularly a new loan. A property owner with a loan secured by the property who applies for another loan to make additions or repairs usually must get a subordination of the original loan so the new obligation is in first place. A declaration of homestead must always be subordinated to a loan.

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