A
loan made by more than one
lender that is
secured by the same
stock or other
security. All lenders have a
lien on a given security until the loan is
paid off. In complementary financing, two or more lenders make two or more loans to a single
borrower and secure those loans by a certain security. The amount of the lien on the security is in proportion to the amount of the loan each lender makes. For example, if Lender A loans $60,000 and Lender B loans $40,000 to Borrower C and they both secure their loans with a certain number of
shares of Stock D, then, in the event of
default, Lender A has the right to 60% of the shares, while Lender B has the right to 40%.