A Subordination Clause is a clause in a legal document that states that one party's rights or obligations will be subordinate to those of another party. This type of clause is often used to create subordinated debt, also known as junior debt, whereby the payment of a senior debt is given priority over the payment of a junior debt. In other cases, a Subordination Clause may be used to subordinate one party's rights to those of another party in a contract. These clauses can be either bilateral, whereby both parties agree to subordinate their rights, or unilateral, whereby only one party is subordinating their rights. Examples of Subordination Clauses include lien subordination, leasehold subordination, mortgage subordination, and subordination of security interests.