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equitable subordination

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Legal Dictionary

Main Entry: equitable subordination
Function: noun
: the subordination of a creditor's claim in a bankruptcy proceeding imposed by the court when the creditor has an unfair advantage over other creditors because of improper conduct or an advantageous position (as of a corporate insider)
Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
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