Glossary of Banking Terms

Foley vs Hill

Court ruling that defined the relationship between banker and customer as that of debtor and creditor respectively. Consequently the banker is not considered to be the customer's agent. The implication is that the money on deposit in the bank is the property of the bank (source).

Pari Passu

 'Of equal step' in latin. Often seen in venture capital term sheets, indicating that one series of equity will have the same rights and privileges as another series of equity (source).

Subordinated Debt

Subordinated debt is debt which ranks after other debts should a company fall into receivership or be closed.