Pari-passu
Pari-passu—Latin for “equal footing”—is a financing arrangement that gives multiple lenders equal claim to the assets used to secure a loan. If the borrower is unable to fulfil the payment terms, the assets can be sold, and each lender receives an equal share of the proceeds at the same time. This is different than most agreements involving more than one lender, which typically establish a repayment hierarchy where certain lenders get top priority in terms of payout timing and amounts.
The term pari-passu can also be used in other financing contexts where different parties have equal claim or seniority (e.g., wills, trusts, bonds, different share classes).