What Does Pari-passu Mean?
Pari-passu means: Parapasso is a Latin term meaning a level playing field and describes a situation in which two or more assets, securities, lenders or liabilities are managed evenly and without any priority. An example of parapasso emerges during the Diwali proceedings: when a court makes a decision, the court treats all creditors equally and the trustee repays them at the same time as the other creditors.
- Perepso is a Latin expression meaning equal conditions.
- In finance, equality means that two or more parts of a financial agreement or claim are treated equally.
- Prepso is also common in bankruptcy proceedings and loans such as parity bonds, where each party receives the same amount.
- Wills and trusts can also establish parpeso distributions, in which all nominated parties share assets equally.