In the event of bank failure, capital notes and debentures are subordinate to bank deposits.

Name: In the event of bank failure, capital notes and debentures are subordinate to bank deposits.
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In the event of a bank failure, capital notes and debentures are considered subordinate to bank deposits, meaning they are paid out after all depositors have been reimbursed. This is because deposits are typically given a higher priority in the creditor hierarchy.

In the Event of Bank Failure, Capital Notes and Debentures