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Borrowed money: Difference between revisions
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{{a|banking|}}“'''Borrowed money'''” | {{a|banking|}}“'''Borrowed money'''” — often confused with [[indebtedness]], although indebtedness is a wider concept — is a term of art used in financial contracts. It is a key part of the definition of {{isdaprov|Specified Indebtedness}} in the {{isdama}}, which in turn is a key part of the definition of {{isdaprov|Cross Default}}. | ||
In the [[capital structure]], [[unsecured]] [[borrowed money]] ranks equally (''[[pari passu]]'', in the lingo) with all unsecured payment obligations to creditors in the insolvency of the company that owes it, and ahead of amounts owed to shareholders, preferential shareholders and holders of [[subordinated debt]]. | In the [[capital structure]], [[unsecured]] [[borrowed money]] ranks equally (''[[pari passu]]'', in the lingo) with all unsecured payment obligations to creditors in the insolvency of the company that owes it, and ahead of amounts owed to shareholders, preferential shareholders and holders of [[subordinated debt]]. | ||