CIP Priority Rules

CIP Priority Rules refer to guidelines for determining the ranking of different types of interests when dealing with financial transactions or claims against a company's assets, particularly during bankruptcy or liquidation. These rules prioritize certain creditors over others based on their legal standing or the nature of their claims. For example, secured creditors, who have collateral backing their loans, are typically paid before unsecured creditors, like suppliers or shareholders. Understanding these rules helps ensure that the rights of different stakeholders are respected fairly during financial distress.