Tracy borrows $30,000 from Secure State Bank.The lender accepts Tracy's equity in her home as collateral,which can be seized if the loan is not repaid on time.With respect to any proceeding that occurs if Tracy fails to make the payments,this loan is subordinated.This means that it

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A subordinated loan is one that has a lower priority than other loans or liens on the same property. In this case, Tracy's primary mortgage would have a higher priority than the loan from Secure State Bank, which is subordinated. If Tracy fails to make payments, the bank may seize her equity in the property, but only after the primary mortgage has been satisfied.

Tracy Borrows $30,000 from Secure State Bank