Definitions
from Wiktionary, Creative Commons Attribution/Share-Alike License.
- noun finance A type of
loan or loan condition in which the borrower agrees with the lender not to allow any other lender or creditor to rank ahead for payment in the event of aliquidation . Such a loan isunsecured (ie. not backed by a charge over specific assets). Hailed as a great innovation when developed in the 1970s, but by the end of the 1980s had become a dirty word.
Etymologies
from Wiktionary, Creative Commons Attribution/Share-Alike License
The idea (and hence presumably the name) developed in the United States, and then went global. (Reference: Trevor Sykes, The Bold Riders, second edition, 1996, ISBN 1-86448-184-6, page 8.)
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