👉 Presubordinated is a legal term in the United States that refers to a debt or obligation that has been incurred before it is fully paid off. It is similar to a pre-existing lien, but instead of being attached to a specific asset, it attaches to an underlying claim or obligation. This can happen if the original creditor fails to collect on their previous debts or if the party in possession is unable to pay the debt due to unforeseen circumstances such as bankruptcy proceedings.
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