2. Seniority Ranking and Priority of Claims
c. describe seniority rankings of corporate debt and explain the potential violation of the priority of claims in a bankruptcy proceeding;
In finance, what is does seniority refer to?
In finance, seniority refers to the order of repayment in the event of a sale or bankruptcy of the issuer.
If a debt issuer goes bankrupt does secured or unsecured debt take priority?
In general, secured debt takes priority over unsecured debt if the issuer goes bankrupt.