2nd lien - can the first lien holder stipuate conditoins on 2nd

[Sushil Sureka]

We are looking to loan out money against a second lien. While reviewing the 1st lien, we saw this in the family rider that was attached as part of first lien.

C. Subordinate Liens: Except as permitted by federal law, Borrower shall not allow any lien inferior to the security instrument to be perfected against the Property without Lender's prior written permission.

Now initially it seemed like to put the 2nd lien, we would need to get first lienholde approval. But reading it again it seems like it suggests to say if it is permitted by federal law, 2nd liens are fine. What is your reading of this clause?

SS