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Legal Dictionary

pari passu

Legal Definition of pari passu

Etymology

    Latin Origin
  1. Equitably and without preference. This term is often used in bankruptcy proceedings where creditors are said to be "pari passu" which means that they are all equal and that distribution of the assets will occur without preference between them.

Etymology

    Latin origin

Definition of pari passu

Adjective

pari passu

  1. (economics) at an equal rate

    While the gas price has been dropping, the currency has been inflating pari passu.

Adverb

pari passu

  1. (economics) at an equal rate

    While the gas price has been dropping, the currency has been inflating pari passu.

Further reading

Pari passu is a Latin phrase that literally means "with equal step."[1] It is sometimes translated as "part and parcel," "hand-in-hand," "with equal force," or "moving together," and by extension, "fairly," "without partiality."

In law, this term is commonly used as legal jargon. Black's Law Dictionary (8th ed., 2004) defines pari passu as "proportionally; at an equal pace; without preference."

In finance, this term refers to two or more loans, bonds, classes of shares having equal rights of payment or level of seniority.[2] For asset management firms, the term denotes an equal allotment of trades to strategically identical funds or managed accounts.

This term is also often used in bankruptcy proceedings where creditors are said to be paid pari passu, or each creditor is paid pro rata in accordance with the amount of his claim. Here its meaning is "equally and without preference."

See also

  • Statute of Bankrupts Act 1542, introducing the pari passu principle for creditors of insolvent persons. Pari Passu means treat at par from the previous issue

References

  1. Belinsky, Natalya. "Glossary of Colloquialisms (Starting with "P")". TranslationDirectory.com. Retrieved 2008-02-13.
  2. Investopedia.com

External links

References:

  1. Wiktionary. Published under the Creative Commons Attribution/Share-Alike License.



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