Final answer:
The authorization of the refinancing scenario cannot be definitively concluded without considering lender policies, the terms of the existing lien, the conditions of the new loan, and other legal factors. It generally depends on the value of the collateral and agreement of all parties involved.
Step-by-step explanation:
Whether the scenario described in the question, where a lender refinances an outstanding non-guaranteed loan of $75,000 by securing a new guaranteed loan of $125,000 with a second lien on machinery valued at $300,000, is authorized cannot be determined solely by the given details. Authorization would depend on the lender's policies, the terms of the existing lien, the guarantee conditions of the new loan, and applicable laws and regulations.
However, in general financial practice, refinancing a loan by securing additional debt against an asset is possible if the collateral's value sufficiently covers the total amount of the debt, and all parties agree to the terms. The machinery's appraisal at $300,000 suggests the value could be adequate, but the determination of authorization includes assessing risks such as the borrower's repayment ability and the economic conditions.