Prior charge,

Definition of Prior charge:

1. Right to the first claim on a borrowers assets granted to a lender under a loan agreement. In case of the liquidation of borrowers assets, the prior charge holder is paid first.

2. A class of stock or capital on which claims for payment take precedence over the claims of ordinary stock or capital.

How to use Prior charge in a sentence?

1. Items to be taken into account as a prior charge on the assets.