This Chart illustrates the structure of a basic mezzanine loan transaction involving commercial real property. In its simplest form, a mezzanine loan is a loan made by the mezzanine lender to the immediate parent entity of the mortgage borrower. The mezzanine loan is secured by a pledge of all or a portion of the parent entity's beneficial ownership interest in the mortgage borrower entity. A mezzanine lender does not have any security interest in the real property owned by the mortgage borrower as illustrated in this Chart. The mezzanine lender and mortgage lender typically enter into an intercreditor agreement which governs the scope of their rights and remedies.