Definition of "subordination"
  1. When a creditor with a priority debt agrees to lower their priority in order to make room for a new debt
How to use "subordination" in a sentence
  1. The bank's loan became secondary in claim due to subordination when the business took on new debt.
  2. Subordination allowed the small business to take on additional debt, putting their bank loan second in line.
  3. Through subordination, the existing creditor accepted a lesser priority to accommodate the new lender.

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