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Definitions from the Web

Subordinate Loan

Description:

A subordinate loan is a type of loan that ranks lower in priority or preference compared to other loans in case of default or bankruptcy. It is usually secured with collateral, but the lender's claim to the assets is secondary to the primary loan. Subordinate loans are commonly taken out to bridge the gap between the purchase price of property and the primary loan amount.

Sample Sentences:

Noun:

1. She decided to apply for a subordinate loan to cover the remaining cost of the house.
2. The developer secured a subordinate loan to finance the construction of the new shopping center.

Adjective:

1. The borrower had difficulty finding a lender willing to provide a subordinate loan.
2. During economic downturns, subordinate loans are often considered riskier by financial institutions.

Verb:

1. They decided to subordinate their loan to take advantage of a lower interest rate.
2. The company agreed to subordinate the loan, allowing the new creditor to be in primary position.

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