Pari Passu is a Latin phrase that refers to equal footing. It describes the situations where two or more assets, securities, creditors or obligations are equally managed.
In finance, the term pari-passu refers to loans, bonds or classes of shares that have equal rights of payment, or equal seniority. In addition, secondary issues of shares that have equal rights with existing shares rank pari-passu. Wills and
trusts can assign an in pari-passu
distribution where all of the assets will be
equally divided between the named parties.