Subordination means that subsequent creditors agree to wait until all claims of the senior debt are satisfied.

Name: Subordination means that subsequent creditors agree to wait until all claims of the senior debt are satisfied.
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Question

Quizplus · Accepted Answer

Subordination involves the agreement of subsequent creditors to prioritize the claims of senior debt, meaning they agree to wait until the senior debt is satisfied before making their own claims. Therefore, the statement is true.

Subordination Means That Subsequent Creditors Agree to Wait Until All