(i) Subject to the provisions of paragraph b(8) of this Annex, a subordination agreement may provide that the creditor may, after prior written notification to the broker or dealer and to the audit authority which intervenes no earlier than six months after the date of entry into force of this subordination agreement, accelerate the date on which the broker`s or dealer`s payment obligation exists. in addition to accrued interest or indemnities, the lender shall not be due no earlier than six months after the date of issuance of such notice, but the lender`s right to receive payment at the same time as accrued interest or indemnities remains subordinated in accordance with the provisions of 17 CFR 240.15c3-1 and 240.15c3-1d. Priority debt is usually financed by banks. Banks benefit from lower senior risk status in the order of repayments, as they can usually afford to accept a lower interest rate because they have an inexpensive source of funding from deposit and savings accounts. In addition, regulators are committed to banks maintaining a portfolio of less risky loans. (C) find that, at the time of subordination, the specified equipment, insurance or guarantee of the broker or dealer included in the subordination agreement and on which the subsengism agreement was based or pursued was imprecise; (ii) “subordinated loan agreement” means the agreement or arrangements that certify or regulate a subordinated cash loan. The difference between subordinated debt and priority debt is the priority in which claims are paid by a bankrupt or liquidating company. .
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