Akademik

second lien loan
USA
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.