Loan Agreement Director To Company

Subordination, a transaction or agreement by which a creditor (the subordinated creditor) agrees to defer or settle, until another creditor of the borrower (the priority creditor) has paid its debt (the “priority debt”) by the borrower. This relatively simple statement is based on a large number of types of subordination and methods to achieve such subordination. This attempt at a simple definition already masks a whole series of questions about what the definition means and about the absolute degree of displacement or subordination. Directors can grant loans to companies on the same basis as any commercial organization.