equitable subordination

equitable subordination
equitable subordination
the lowering of priority of a claim because the holder of the claim is found to be guilty of some kind of improper conduct (Glossary of Common Bankruptcy Terms)

The action by which a court postpones payment to one creditor until others are paid. This is usually based upon the inequitable or wrongful conduct of the postponed creditor.
If the sole shareholder of a debtor corporation improperly dealt with the assets of the company, the repayment of that shareholder's actual loans to the company may be equitably subordinated to all other creditors. (Bernstein's Dictionary of Bankruptcy Terminology)

United Glossary of Bankruptcy Terms 2012.

equitable subordination
The action by which a court postpones payment to one creditor until others are paid. This is usually based upon the inequitable or wrongful conduct of the postponed creditor. If the sole shareholder of a debtor corporation improperly dealt with the assets of the company, the repayment of that shareholder's actual loans to the company may be equitably subordinated to all other creditors.

US Bankruptcy 2012.


Glossary of Bankruptcy.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • equitable subordination — n: the subordination of a creditor s claim in a bankruptcy proceeding imposed by the court when the creditor has an unfair advantage over other creditors because of improper conduct or an advantageous position (as of a corporate insider) Merriam… …   Law dictionary

  • equitable subordination — A legal term used in bankruptcy to describe a process in which a bankruptcy judge decides that fairness can only be achieved by giving lower priority (subordinating) the claims of one or more creditors (usually a secured bank) to the claims of… …   Financial and business terms

  • Subordination (finance) — Subordination in banking and finance refers to the order of priorities in claims for ownership or interest in various assets.United States lawubordination of debtSubordination is the process by which a creditor is placed in a lower priority for… …   Wikipedia

  • subordination of claim — see equitable subordination (Bernstein s Dictionary of Bankruptcy Terminology) United Glossary of Bankruptcy Terms 2012. subordination of claim under Equitable Subordination …   Glossary of Bankruptcy

  • subordination — sub·or·di·na·tion /sə ˌbȯrd ən ā shən/ n: an act or instance of subordinating; also: the remedy of subordinating a claim see also equitable subordination Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • capitalization — cap·i·tal·i·za·tion /ˌka pət əl ə zā shən, əl ī / n 1: the act or process of capitalizing capitalization of earnings 2: a sum resulting from a process of capitalizing; esp: paid in capital at capital ina …   Law dictionary

  • Andreas Cahn — (* 30. September 1959 in Frankfurt am Main) ist ein deutscher Rechtswissenschaftler. Cahn lehrt seit 2002 als Professor für Bürgerliches Recht und Wirtschaftsrecht an der Goethe Universität Frankfurt am Main. Er ist geschäftsführender Direktor… …   Deutsch Wikipedia

  • DROIT — LE DROIT occupe, dans le monde « occidental », une place de premier plan. Il est regardé comme le grand régulateur de la vie sociale. Héritiers de Rousseau et de Montesquieu, Kant et les rédacteurs de la Déclaration des droits de l’homme et du… …   Encyclopédie Universelle

  • Mortgage law — This article is about the legal mechanisms used to secure the performance of obligations, including the payment of debts, with property. For loans secured by mortgages, such as residential housing loans, and lending practices or requirements, see …   Wikipedia

  • Italy — /it l ee/, n. a republic in S Europe, comprising a peninsula S of the Alps, and Sicily, Sardinia, Elba, and other smaller islands: a kingdom 1870 1946. 57,534,088; 116,294 sq. mi. (301,200 sq. km). Cap.: Rome. Italian, Italia. * * * Italy… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”