Junior Lien Loan definition

Junior Lien Loan means a secured loan that (i) is not subordinated in right of payment by its terms to unsecured indebtedness of the obligor for borrowed money (other than with respect to liquidation, trade claims, capitalized leases or other similar obligations), but which is subordinated (with respect to liquidation preferences with respect to pledged collateral) to another secured obligation of the obligor with respect to all or a portion of the collateral securing such secured loan and (ii) is not secured by a valid first priority lien or security interest (but is secured by a valid second priority perfected lien or security interest) on specified assets securing the obligor's obligations with respect to such loan, which specified assets do not consist solely of intangibles issued by the obligor or any of its affiliates.

AI-Powered Contracts

Draft, Review & Redline at the Speed of AI

Junior Lien Loan means a secured loan (i) that is not subordinated in right of payment by its terms to unsecured indebtedness of the obligor for borrowed money (other than with respect to liquidation, trade claims, capitalized leases or other similar obligations), but which is subordinated to another secured obligation of the obligor secured by all or a portion of the collateral securing such secured loan; (ii) that is secured by a valid second priority perfected security interest or lien in, to or on specified collateral securing the obligor's obligations under such secured loan; and (iii) with respect to which the value of the collateral securing such secured loan, together with other attributes of the obligor (including, without limitation, its general financial condition, ability to generate cash flow available for debt service and other demands for that cash flow) is adequate (in the reasonable business judgment of the Collateral Manager) to repay such secured loan in accordance with its terms, and to repay all other loans of equal or higher seniority secured by a first or second lien or security interest in the same collateral.

Junior Lien Loan means any assignment of or Participation Interest in or other interest in a loan (including a Synthetic Security that references such a loan) which (i) is not by its terms (and is not expressly permitted by its terms to become) subordinate in right of payment to any other obligation for borrowed money of the related obligor, other than a Senior Secured Loan, (ii) is secured by a valid second priority perfected security interest or lien in, to or on specifically identified property of the related obligor, subject to customary permitted liens (whether or not the Issuer and any other lenders are also granted a security interest of a higher or lower priority in any additional property of the related obligor that is specifically identified), (iii) is secured by specifically identified property of the related obligor having a value (determined as set forth below) not less than the outstanding principal balance of such loan plus the aggregate outstanding principal balance of all other loans of equal or higher seniority secured by the same specifically identified property, and (iv) does not qualify as a Senior Secured Loan. The determination as to whether condition (iii) of this definition is satisfied shall be based on the Manager’s judgment at the time such loan is included in the Assets.

Examples of Junior Lien Loan in a sentence

The 2016 Senior Loan, as evidenced, by the 2016 Senior Note, the UCCS Junior Lien Loan Agreement, the Developer Junior Lien Note and the City Junior Lien MOU are permitted, notwithstanding any provision of this Section 4.04.
The Senior Lien Collateral Agent, on behalf of itself and each other Senior Lien Claimholder, acknowledges and agrees that none of the Junior Lien Collateral Agent or any other Junior Lien Claimholder has made any express or implied representation or warranty, including with respect to the execution, validity, legality, completeness, collectability or enforceability of any of the Junior Lien Loan Documents, the ownership of any Collateral or the perfection or priority of any Liens thereon.
Other than the 2016 Senior Swap Agreement, the 2016 Subordinate Bonds, the UCCS Junior Lien Loan Agreement, the Developer Junior Lien Note and the City Junior Lien MOU, the Authority covenants not to issue or incur any Debt or any other obligation which is payable from or secured by any portion of the Incremental Tax Revenue without the prior written consent of the Bank.
Except as otherwise provided herein, the Junior Lien Claimholders will be entitled to manage and supervise their respective loans and extensions of credit under the Junior Lien Loan Documents in accordance with law and as they may otherwise, in their sole discretion, deem appropriate.
If any of the First Lien Collateral Agent, the Second Lien Collateral Agent or the Junior Lien Collateral Agent resigns or is replaced pursuant to the Senior Lien Loan Documents or the Junior Lien Loan Documents, as applicable, its successor and/or assign shall be deemed to be a party to this Agreement and shall have all the rights of, and be subject to all the obligations of, this Agreement.
This Agreement, the Senior Lien Loan Documents and the Junior Lien Loan Documents represent the entire agreement of the Grantors, the Senior Lien Claimholders and the Junior Lien Claimholders with respect to the subject matter hereof and thereof, and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof and thereof.
In the event of any conflict between the provisions of this Agreement and the provisions of the Senior Lien Loan Documents or the Junior Lien Loan Documents, the provisions of this Agreement shall govern and control.
This is a continuing agreement of lien subordination and the Senior Lien Claimholders may continue, at any time and without notice to the Junior Lien Collateral Agent or any other Junior Lien Claimholder subject to the Junior Lien Loan Documents, to extend credit and other financial accommodations and lend monies to or for the benefit of the Company or any Grantor constituting Senior Lien Obligations in reliance hereof.
No Junior Lien Loan Document may be amended, supplemented or otherwise modified or Refinanced, and no new Junior Lien Loan Document may be entered into, in each case if the effect of such amendment, supplement, modification or Refinancing or new Junior Lien Loan Document is restricted or prohibited pursuant to the Senior Lien Credit Agreement.
In addition, to the extent any Senior Lien Obligations or Junior Lien Obligations are or become secured by a Lien on real property of the Loan Parties, each Junior Lien Loan Document that is a Mortgage on any Collateral shall contain such other language as the Senior Lien Administrative Agent may reasonably request to reflect the subordination of such Mortgage to the corresponding Mortgage that is a Senior Lien Document covering such Collateral.

More Definitions of Junior Lien Loan

Junior Lien Loan means any assignment of or Participation Interest in or other interest in a loan (including a Synthetic Security that references such a loan) that is secured by a valid and perfected