priority of payment

The firm may also perform a cash flow tie-out in which the transaction's waterfall is modeled per the priority of payments set forth in the transaction documents.

Lenders and other creditors that extend credit or provide financing to a debtor during the course of a chapter 11 case do so with the expectation that their claims will be entitled to elevated priority of payment.

In this role, the collateral administrator produces and distributes noteholder reports, performs various compliance tests regarding the composition and liquidity of the asset portfolios in addition to constructing and executing the priority of payment waterfall models.

The Wages Protection and Contractors Liens Act (1939) safeguarded the wages of certain types of workers mostly in construction projects by making various provisions "to ensure priority of payment of wages over other claims against principals, contractors, or subcontractors".

Krasner v McMath [2005] EWCA Civ 1072 (also, Re Huddersfield Fine Worsteds Ltd) is a UK labour and insolvency law case concerning the priority of payments to workers of an insolvent company in priority to other creditors.