Lending & investment · Defined
Senior debt
Debt with priority over specified junior capital under the applicable loan, security, and intercreditor arrangements.
Why it matters
Priority of payment is distinct from physical progress. A senior lender may require construction monitoring even when the borrower has substantial equity invested. Actual rights depend on the documents.
In practice
A project example
A monthly draw package supports a senior loan advance while separate equity obligations remain outside that advance.
General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.