Pari passu

Term

General

Literal meaning	With equal step
Pronunciation	PAH-ree PAS-soo

On an equal footing, at the same rate, without preference.

Example

Unsecured creditors are paid from a bankrupt's estate pari passu, each in proportion to the debt owed.

Exam tip

Asked in insolvency and company law.

Memory trick

Equal step, equal share.

Key takeaway

Pari passu means equally, without preference.