Second Lien Loan

A loan secured on a second ranking basis by (more or less) the same collateral (www.practicallaw.com/3-382-3343), 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.

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