Okuzeka
Finance & Banking vocabulary · Loans & Credit

Pari passu

Meaning in finance & banking, with examples

phraseAdvanced term

In finance & banking, pari passu means: Ranking equally with specified other claims in payment priority or legal status.

In Turkish: eşit sırada

How it is used

This Latin phrase describes ranking; equal rank does not guarantee equal payment timing.

Example sentences

  1. The notes rank pari passu with the issuer's other unsecured debt.

    The phrase compares the legal ranking of specified obligations.

  2. The lender reviewed the pari passu clause before joining the syndicate.

    The contractual wording defines the promised ranking.

Common collocations

  • rank pari passu
  • pari passu clause
  • syndicated loanA large loan provided by a group of banks together under one agreement, so that no single bank takes all the risk.
  • unsecured loanA loan given without collateral, based only on the borrower's income and credit history. It usually has a higher interest rate than a secured loan.

More terms: Loans & Credit

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This page explains English vocabulary for learners. It is not financial advice.