Effective Subordination
Where Junior Debt is repaid before Senior Debt. This situation mainly arises where a bond (the contractually Junior Debt) matures before the repayment date of a loan (the contractually Senior Debt).
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Where Junior Debt is repaid before Senior Debt. This situation mainly arises where a bond (the contractually Junior Debt) matures before the repayment date of a loan (the contractually Senior Debt).