I am working in one of the MNC where I am recently transfer to Bank Loan department (Syndicate loan )so I want to Know about below loans.

1) Par Loan.

2) Distressed Loan.

3) Term Loan.

4) First Lien & Second Lien Loan

Collateral taken to get the SBA 504 loancommonly includes a second loan on the land and building or a second lien on the equipment that is financed.

Yes, if the lienholder agrees to lift it. It is commonly called a postponement or subordination. This is very common in fact. If a person buys a home with a mortgage, that mortgage is a first lien. If the owner then takes out a home equity loan, that is a second lien because it was placed on the property after the first mortgage lien. Next, if that person refinanced the first mortgage, the new loan would pay off the first, eliminating it and giving the home equity loan the first position. The new loan would be in second position because it comes after the home equity loan. But the refinancing company would not agree to the refinance unless the home equity bank agreed to postpone or subordinate its the second lien and let the new refinanced loan become the first lien. The home equity bank would sign a document agreeing to allow the refincing bank get into first place. The home equity loan would then drop back into second place just as it had been before. In a sense the home equity lien has been lifted then reinstated. So it can be done but only with the lienholder's consent.

The difference is really all in how the loans were originated. A junior mortgage refers to the lien placement on the property title. A second mortgage means a mortgagor has more than one loan on a property with the same lender.

For example, If I purchase a home (assuming the title is clean and there are no liens on the title) and get the loan with ABC Bank then ABC Bank is considered the senior mortgage. If I obtain another loan with ABC Bank most commonly a HELOC or Home Equity Line of Credit then it is a second mortgage in second position. Let's say that after I obtained the second loan with ABC Bank, I chose to take out a smaller loan against the property with XYZ Bank. That loan will be considered a junior lien.

The loans won't always fall that clean on the title however. You can have a junior lien between a senior lien and second mortgage. In the example above if the XYZ Bank loan was taken out before the second mortgage with ABC Bank then it would still be called a junior lien and the second mortgage with ABC Bank would be the second mortgage with ABC Bank but in third position.

Hope that helps!

If the vehicle was put as collateral for the loan, there already is a lien on it.