Examlex
You are watching a rat in a Skinner box, and every time a red light comes on, the rat presses the bar in the cage.However, when a green light comes on, the rat never presses the bar.In this case, it appears that the color of the light is acting as:
Priority Claims
Debts that are given special status and are paid before other debts in a bankruptcy proceeding.
Subordination Agreements
Legal documents that alter the priority of financial claims, making one party's claim rank behind another's in the event of a bankruptcy or liquidation.
Pro Rata
A Latin term that means "in proportion," often used to describe a method of allocating amounts or shares among participants according to their entitlement or contribution.
Chapter 11
A provision under the U.S. Bankruptcy Code that allows businesses to reorganize and restructure their debts while continuing operations.
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