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,"^{[citation needed]} 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."

[edit] 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
• Seniority (finance)
• List of Latin Phrases

[edit] References

[edit] External links

This article includes a list of references, related reading or external links, but its sources remain unclear because it lacks inline citations. Please improve this article by introducing more precise citations where appropriate. (December 2007)

• FINANCIAL MARKETS LAW COMMITTEE ISSUE 79 — PARI PASSU CLAUSES
• THE PARI PASSU CLAUSE IN SOVEREIGN DEBT INSTRUMENTS
• SECTION 334 AND THE PARI PASSU PRINCIPLE

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