What is mezzanine loan?
Junior debt secured by a pledge of the equity interests in the property-owning entity (LLC or LP) rather than a lien on the property. It is foreclosable under the UCC, often faster than mortgage foreclosure, and permitted where senior documents prohibit junior property liens.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.