Second Lien Debt

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Definition: Second Lien Debt

Second Lien Debt
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Full Definition of Second Lien Debt

A debt that places its holders second in line in the case of bankruptcy or default. Second lien debt holders receive compensation from property or other collateral after first lien debt is covered, making this type of loan a riskier investment. For example, a company issuing a homeowner a second mortgage will be able to claim assets only after the company issuing the first mortgage has completed its claim.

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Page URL
https://payrollheaven.com/define/second-lien-debt/
Modern Language Association (MLA):
Second Lien Debt. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 19, 2024 https://payrollheaven.com/define/second-lien-debt/.
Chicago Manual of Style (CMS):
Second Lien Debt. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/second-lien-debt/ (accessed: April 19, 2024).
American Psychological Association (APA):
Second Lien Debt. PayrollHeaven.com. Retrieved April 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/second-lien-debt/

Definition Sources

Definitions for Second Lien Debt are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 16th November, 2021 | 0 Views.