Definition

Adverb 1. With equal progress; at the same rate or pace: Used to indicate that two or more things are proceeding or being treated equally and simultaneously. 2. Without preference; proportionally: Used to describe actions, such as payments or distributions, that are made concurrently and without any party receiving an advantage over another.

Usage

The term pari passu is a Latin phrase adopted into English, primarily used in formal, legal, and financial contexts. It describes a situation where multiple parties, claims, or processes advance together, side by side, with equal footing.

Examples

• The proceeds from the asset sale will be distributed pari passu among all the secured creditors.
• The two classes of shares will rank pari passu in all respects, including dividend payments.
• The new law and the amended regulations will come into effect pari passu.

Advanced Usage

• Pari Passu Clause: A common provision in loan agreements and bond indentures stating that the debt instrument will rank equally with all other present and future unsecured debt of the issuer. This prevents the issuer from later creating debt with a superior claim.
  • Example: The bond contract includes a standard pari passu clause to protect the investors.

Variants and Related Words

• Pari-passu (adjective): Sometimes used in an adjectival form, though the adverb is standard.
  • Example: The pari-passu distribution of funds.

Synonyms

• Equally
• Pro rata
• Proportionally
• Side by side
• Concurrently

Antonyms

• Preferentially
• Unequally
• Sequentially

Adverb

1. used in legal language