Junior Lien
/ˈdʒuː.njɚ liːən/
Definitions
- (n.) A lien that has lower priority compared to a senior lien, meaning it will be paid only after senior liens are satisfied in a foreclosure or debt repayment.
The junior lienholder must wait until the senior lien is paid before receiving any proceeds from the sale.
Related terms
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Commentary
Junior liens are subordinate and carry greater risk; careful priority analysis is critical when drafting or evaluating security interests.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.