Ranking
The order of priority in which creditors or security interests are paid from available assets.
Related terms
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Preferential creditor
A creditor given statutory priority for certain debts in insolvency, ranking ahead of ordinary unsecured creditors.
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Priority of security
The order in which competing secured creditors are entitled to be paid from the same asset.
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Pari passu
A Latin term meaning “on an equal footing”. In insolvency it describes creditors in the same class sharing available funds proportionately.
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