Definition of Prior charge:
Right to the first claim on a borrowers assets granted to a lender under a loan agreement. In case of the liquidation of borrowers assets, the prior charge holder is paid first.
A class of stock or capital on which claims for payment take precedence over the claims of ordinary stock or capital.
How to use Prior charge in a sentence?
- Items to be taken into account as a prior charge on the assets.
Meaning of Prior charge & Prior charge Definition