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The lender on a loan with collateral. When one has placed collateral on a loan, the lienholder has the right to take possession of the collateral in the event of default. One cannot sell the collateral until the loan is repaid.


A lienholder is the bank, finance company, credit union, other financial institution, or individual with whom you signed an agreement to borrow money using a particular asset, such as a car, as collateral.

As long as there is a balance due on the loan, the lienholder must be repaid before you are free to sell the asset.

References in periodicals archive ?
Jakob Pek HYIP Fund, LP is the primary lien holder on each loan, securing all investments with real estate collateral.
The mechanic's lien holder disputed the foreclosure, arguing that the property could not be foreclosed upon after the original borrower met its debt obligations by giving the lender the deed in lieu.
com)-- The property on Vista Lakes at the time of the last contract was listed at $265,000 and closed at $271,000, with $5,000 closing cost contribution to the buyer from Seterus Mortgage, which was the first lien holder and Bank of America was the 2nd lien holder.
three area men were arrested in late March for allegedly erasing lien holder information on titles in order to take out multiples loans on the same vehicle.
Registered charges, while securing a debt, may do little to assist in the short term as the contractor or designer, the lien holder, may not be able to force the sale of the property to recover its money.
When] a first mortgage loan is refinanced for more than the amount due and owing on the first mortgage, the risks assumed by the second lien holder increase without the second lien holder's consent.
Property owners who remain delinquent may be foreclosed upon by the tax lien holder.
In the third foreclosure sale, Bank of America, as lien holder, purchased the parcel for $233,850.
Tarragon, the original developer of the property, was required by the bankruptcy court to sell the asset to satisfy the lien holder.
If payments are made to the second lien holder without notice to the primary lien holder, then the agent, as well as the seller, may be exposed to liability or fraud.
For example, settling with the first lien holder is nonsensical when the second lien holder will later file suit.
To make matters worse, many states' ethical opinions and rules of professional conduct can now be read to impose a duty to hold disputed funds (such as lien amounts) in the attorney's trust account and even to notify the ERISA lien holder of settlement.