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Lien
(redirected from First lien)

   Also found in: Medical, Legal, Encyclopedia, Wikipedia, Hutchinson 0.04 sec.
Lien
A security interest in one or more assets that lenders hold in exchange for secured debtfinancing.

lien
The legal right of a creditor to sell mortgaged assets when the debtor is unable or unwilling to meet requirements of a loan agreement. A lien makes a bondholder's claim more secure.

Lien. A lien exists when you owe money to a lender on a particular vehicle or other asset, such as real estate, that has been used as collateral on a loan.

An asset on which there's a lien can't be sold until the lienholder has been repaid. When you own an asset on which there's a lien, you risk having it repossessed if you default and don't make the required payments in full and on time.



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? Mentioned in ? References in periodicals archive
 
An $8,240,000 first lien mortgage for the purchase of two office buildings in Cleveland, Oh.
In the first half of the year, S & P reported, the first lien represented 67 percent of the transaction, and the second lien 28 percent.
Knowledge of lien status is basic to credit underwriting because loans secured by first liens have a lower incidence of default than loans secured by junior liens or unsecured loans; consequently, loans secured by a first lien are generally offered at the lowest rates of interest.
 
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