A closed-end mortgage is a type of mortgage bond issue with an indenture that prohibits repayment before maturity and the repledging of the same collateral without the permission of the bondholders, also known as a closed mortgage.
A security that has claim prior to a junior obligation and equity on a corporation's assets and earnings. Senior securities are repaid before junior securities in the event of liquidation. Debt, including notes, bonds, and debentures, is senior to stock; first mortgage bonds are senior to second mortgage bonds; and all mortgage bonds are senior to debentures, which are unsecured.
