Unlike senior debt, which is directly secured by the property via a mortgage, a mezzanine loan is only indirectly secured by the underlying asset. The collateral for a mezzanine loan is a pledge of the equity/partnership interests of the borrowing entity. The borrowing entity is usually the property-owning entity. Mezzanine loans typically include an inter creditor agreement with the senior lender, and are usually non-recourse, with no principal repayment guarantee.