Pari Passu charge refers to a charge
A)ranking in priority, regardless of quantum of advances
B)merely notional in nature
C)ranking equally in priority in proportion to the lender's share of advance
D)none of these

Question

Quizplus · Accepted Answer

Pari Passu charge means that the charge or security interest ranks equally without preference or priority among other securities, typically in proportion to the lender's share of the advance. It ensures that in the event of liquidation, creditors are paid out proportionally to their share of the total debt.

Pari Passu Charge Refers to a Charge