Lien


Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia.
Related to Lien: line, Construction lien

Lien

A security interest in one or more assets that lenders hold in exchange for secured debt financing.

Lien

The ability of a lender to sell the collateral if the borrower defaults on a loan. For example, if a loan is secured by one house, the bank or other lender has a lien on the house. It may foreclose and sell the house if the borrower does not make payments in a timely manner. A lien makes a loan less risky for the lender and may entitle the borrower to a lower interest rate or even a higher line of credit. See also: Secured Bond, Mortgage.

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.

lien

A legally enforceable claim on the property of another as a result of a debt or obligation. It may be voluntary,such as a mortgage,or involuntary,such as a tax lien.It may be general,such as a judgment lien on all property within a county,or specific,such as a mortgage lien on the described property. One of the most important concepts in lien law is the priority among competing liens if property is insufficient to pay all claims or if the owner files for bankruptcy.The general rules are as follows (however,there may be local variations among the various states):

1. The first lien to be recorded is paid first, and so on in the order of recordation.

2. A statutory lien, such as a mechanics' and materialmen's lien, may be given artificial priority even though recorded after another lien.

3. Lien priority may be reshuffled if a debtor files for bankruptcy. The rules are too complex to examine here.

4. Lien-stripping takes place in bankruptcy when an asset is not worth as much as the accu- mulated liens placed upon it. Junior lienholders are stripped out and turned into unse- cured creditors. Even mortgage liens may be reduced in amount, if the real estate is not worth as much as the loan balance.

5. A landlord's statutory lien for unpaid rent can be avoided, or set aside, by a bankruptcy trustee, but a landlord's contractual lien cannot be avoided unless lien-stripping comes into play.

References in periodicals archive ?
An important element of tax lien securitization is that a private collector, or servicer, takes over the role of ensuring that delinquent tax revenues are recovered.
Acquisition Pitfalls - What You Don't know Could Cripple Your Portfolio Anti-trust Instruction- Staying Out of Trouble: Do's & Don'ts Portfolio Management - From Boarding Liens to Redemption Processing Asset-REO Management - Not All Liens Redeem: Best Practices for Ugly Real Estate Tax Lien Sales Moratorium: Washington, D.
Specifically, the lien attaches to the real property upon which the contractor has provided labor, services, materials or equipment.
When we did the first couple of lien sales, we had people who owed for five or six years.
Further, the Court's decision does not represent new law and does not affect other law applicable to Federal tax liens and tax collection.
But their former double-wide has dogged them ever since with tax liens, soiled credit and the destruction of their dream-home dream.
The IRS's failure to mention the lien on the certificate effectively destroyed the bank's interests.
Every county in Arizona sells the tax liens to real estate investors in the form of tax lien certificates.
13, 2011 /PRNewswire-USNewswire/ -- The Department of Revenue today updated its online list of state tax liens, which details more than 53,000 state tax liens against individuals and businesses that owe more than $370 million in state taxes.
New York's highest court has just issued a definitive decision, which should remove any doubt as to the absolute need for strict compliance with the "notice of lending" provisions of New York's Lien Law.
6321 imposes a lien on all of a taxpayer's property and rights to property if the Service has demanded payment and the taxpayer did not pay the taxes due.