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LSDefine

Simple English definitions for legal terms

senior lien

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A quick definition of senior lien:

Senior lien refers to a type of security interest in an investment that gets paid back before other types of security interests. It's like being first in line to get your money back if the investment doesn't work out. There can be more than one senior lien, and they are usually the first liens issued with debt on an investment. Later investors may also have a lien on the property, but they can only get paid after the senior liens are paid. To make sure a lien is senior, the lender must register it with the government agency and include specific clauses in the contract.

A more thorough explanation:

Senior lien refers to a type of security interest in an investment that gets paid back before other liens. This means that if the debtor becomes insolvent, the senior lien holders get paid first, and the other lien holders get paid later.

For example, let's say a company takes out a loan and uses its property as collateral. The lender who issued the first lien on the property is considered the senior lien holder. If the company defaults on the loan, the senior lien holder gets paid back before any other lien holders.

It's important to note that there can be multiple senior liens, and there can be multiple tiers of liens. This means that one lien may be "more" senior than another but not the most senior lien.

Bankruptcy laws may automatically treat first liens as senior or may require specific contractual clauses to be negotiated stating that a lien ranks senior to later liens on the property. Virtually all liens contain these clauses and often add a requirement that the debtor receive approval before giving other investors liens on the property. Bankruptcy laws typically uphold these clauses.

Overall, senior liens provide a level of security for investors and lenders, as they ensure that they will be paid back before other parties in the event of insolvency.

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Mostlylegal
11:43
thank you all for the laughs
Mostlylegal
11:44
let this be my formal termination notice
oh no
Mostly where are you going
hey alexa play you'll be black from hamilton
**back
NosyBeagle
12:13
hamilton but he frees the slaves and has to figure out what their racial demographics are for the census
12:17
has anybody compiled the transfer median gpas for law schools anywhere
12:18
instead of having to check each schools 509
12:24
@c0bra1: not that I've seen
12:24
lame
12:24
I think the transfer reddit had a spreadsheet at one point but it's a few years old
@NosyBeagle: I almost fell out of my chair
globalcitizen
13:46
Anyone read annihilation
NosyBeagle
14:40
@windyMagician: I'll be here all week
15:02
yo
15:02
i was training this new girl & she quit on second day
15:03
goin on 6 mo no word from notre dame
whenever someone has the free will to create a protein bar with a texture/appearance unlike an actual log of shit, pls someone send it to me
AngryMiniCar
16:51
any chance I'll improve RC just by hard drilling with no review? I honestly think I just have a reading problem atp
AngryMiniCar
16:51
Not even that I don't know how to answer questions. I think I'm simply not well read
@AngryMiniCar: they say the biggest thing for improving RC over time is just... reading. so yeah! go pick up some books. grab a harder one
@AngryMiniCar: doont worry, 99.9% are uncultured swine
Bettercaulsaul
20:07
The gym is the only reason I’ve been calm waiting for admissions updates
20:49
endorphins go brrrrr
20:55
take so,e
20:55
bruh
20:55
take some tylenol and black pepper before working out to really get that euphoria
Bettercaulsaul
23:25
I’m going to try that & hit a new PR
0:13
@c0bra1: working on one,should be complete tmrw
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