second lien loan

second lien loan
A loan secured on a second ranking basis by (more or less) the same collateral, which secures the first lien loan. The first lien lenders and the second lien lenders agree that, in the event of a security enforcement or bankruptcy, the first lien lenders will be paid in full from the proceeds of collateral before the second lien lenders receive any proceeds.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • second lien — USA The security interest ranking or priority of the lien granted with respect to a second lien loan. Second liens are junior to first liens. Practical Law Dictionary. Glossary of UK, US and international legal terms. 2010 …   Law dictionary

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  • Lien — A security interest in one or more assets that is granted to lenders in connection with secured debt financing. The New York Times Financial Glossary * * * lien li‧en [ˈliːən, liːn] noun [countable] LAW 1. a person s or organization s right to… …   Financial and business terms

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