Duhaime's Law Dictionary

Subordination Definition:

To be subject to the orders or direction of another; of lower rank.

"The act or process by which a person's rights or claims are ranked below those of others."

These were the words adopted by Justice Eugene Wedoff of the United States Bankruptcy Court in Re 203 North Lasalle.

Similarly, in Middlebrook-Anderson v Southwest, Justice Gabbert of the Court of Appeals of California:

"Subordination is, strictly speaking, a status, not an agreement or form of litigation. It refers to the establishment of priority between different existing encumbrances on the same parcel of property, by some means other than the basic priority involved in the concept of first in time, first in priority, or the automatic priority accorded purchase money liens."


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