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The American Heritage Dictionary of Business Terms » preferred creditor
preferred creditor
preferred creditor definition - business
preferred creditor
A creditor having priority to payment over one or more other classes of creditors. For example, a borrower must pay holders of first mortgage bonds before payments are made to holders of second mortgage bonds on the same collateral. First mortgage bondholders are the preferred creditors.
The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
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