Read Short & Simple Definitions Of Complex Legal Terms
ABSOLUTE PRIORITY RU
A legal concept indicating that if a public company DEFAULTS, shareholders are only entitled to recover their investments after creditors have been fully repaid. In most BANKRUPTCY cases shareholders receive little, if any, restitution since they are subordinate to all other claimholders. Absolute priority also extends to the broad category of creditors, where secured creditors receive payment before senior unsecured creditors, who receive payment before junior and subordinated creditors. See al
A title that is acquired by the proprietor. This absolute title is free from any complications such as judgments or liens. It is the only title required for selling a property or getting a mortgage. It is often called a perfect title.