In a bond indenture, subordination is the stipulation that subsequent creditors agree to wait until all claims of the senior debt are satisfied.

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Subordination refers to the agreement of subsequent creditors to accept lower priority in the repayment order, allowing senior debt holders to be paid before them. This is a common feature of bond indentures, where senior debt holders are usually given priority in the repayment order over junior debt holders.

In a Bond Indenture, Subordination Is the Stipulation That Subsequent