Encyclopedia

Subordinated debt


Subordinated loan — a loan, if it simultaneously meets the following conditions: the term of the loan is not less than five years; the loan agreement contains a provision prohibiting its early termination; the terms of the loan are essentially no different from market terms for similar loans at the time of its provision; the loan agreement contains a provision that in the event of bankruptcy of the credit institution, claims under this loan are satisfied after the satisfaction of the claims of all other creditors (ceased to be in force as of 2001-08-07)1.

  1. Federal Law of February 25, 1999 No. 40-FZ "On Insolvency (Bankruptcy) of Credit Institutions", as amended on June 19, 2001, Article 47-1, paragraph 2#3, ceased to be in force as of August 7, 2001 // Official Gazette of the Russian Federation. 1999. No. 9. Article 1097. ↩

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