subordination

[Cf. F. subordination.]

1. The act of subordinating, placing in a lower order, or subjecting.

2. The quality or state of being subordinate or inferior to an other; inferiority of rank or dignity; subjection.

Natural creature having a local subordination.

3. Place of inferior rank.

Persons who in their several subordinations would be obliged to follow the example of their superiors.

1. Establishment of priority of one claim or debt over another. A subordination agreement is one in which a creditor agrees in a contract that claims of other creditors must be fully paid before there is any payment to the subordinated creditor.

2. In real estate law, establishment of priority between different existing interests, claims, liens, and encumbrances on the same parcel of land.

Moving to a lower Priority as a Lien would if it changes from a First Mortgage to a Second Mortgage.
Example: The land seller who held a first mortgage allowed subordination so the Development Loan could be arranged. In return the seller is promised mortgage Retirement in 2 years.

Definition: inferiority
Antonyms: superiority

To put in an inferior class or order; to make subject to, or subservient. A legal status that refers to the establishment of priority between various existing liens or encumbrances on the same parcel of property.

A subordination agreement is a contract whereby a creditor agrees that the claims of specified senior creditors must be paid in full before any payment on a subordinate debt can be paid to the subordinate creditor.

A subordination clause in a mortgage is a provision that gives a subsequent mortgage priority over one that has been executed at an earlier date.

The use of expressions that make one element of a sentence dependent on another. In the following sentence, the first (italicized) clause (also called a subordinate clause) is subordinate to the second clause: “Despite all efforts toward a peaceful settlement of the dispute, war finally broke out.” (Compare coordination, dependent clause, and independent clause.)