noun a Latin phrase meaning 'on an equal footing' or 'at the same pace', often used in legal and financial contexts
In legal contexts, 'pari passu' is used to indicate equal treatment or status. For instance, in a contract, parties may agree to act pari passu, meaning they will have the same rights and obligations.
In finance, 'pari passu' is used to describe the equal ranking of creditors in terms of repayment. For example, in a bankruptcy scenario, creditors with pari passu status are entitled to receive equal payments.
In corporate finance, 'pari passu' can refer to the equal ranking of different classes of securities or loans in terms of repayment priority.
In debt restructuring processes, 'pari passu' clauses may be included in agreements to ensure that all creditors are treated equally and receive payments simultaneously.
In legal writing, 'pari passu' is often used to indicate that two or more parties or debts are to be treated equally or at the same level of priority.
Psychologists may use the term 'pari passu' when discussing the concept of treating all individuals equally and without bias in a therapeutic setting.
Financial analysts may use 'pari passu' when evaluating the ranking of different types of debt or securities in a company's capital structure.
Business executives may use 'pari passu' when negotiating contracts or agreements to ensure that all parties are treated fairly and equally.