Second Lien Loan

Second Lien Debts is subordinate towards rights of additional, more senior debts issued up against the same collateral, or even a portion of the identical collateral. If a borrower defaults, second lien debts stand behind greater lien debts in terms of rights to collect arises from the debt’s actual collateral. The great majority of all second lien loans are usually senior secured obligations of the borrower. Second lien loans change from both unsecured personal debt and subordinated debt.