the Subordination of second lien debt to first lien debt. Here, both Tranches of debt may be Pari Passu in terms of payments, and secured by the exact same Collateral, but the second lien is Subordinated because its beneficiaries agree that in the case of the receipt of any proceeds of sales of that Collateral in a Bankruptcy, the first lien Lenders will be paid prior to any payouts on the second lien debt. See Subordination.
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