Lien

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Related to Lienor: Liens

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 ?
It will also incur legal fees that will be added to the debt; the greater the debt, the less money will be left for the mechanic's lienor (or judgment creditor or inferior lender).
An example of common mistakes made by the lienor is to misdescribe the property or the true record owner of the property.
1) The statutory forms are in a statute that creates a remedy, which by definition is a cumulative remedy to all other remedies of the lienor to obtain payment.
In sum, and contrary to Picker's holding, had the Supreme Court intended to propagate a rule whereby a refinancing lender is denied subrogation rights if it is on constructive notice of an intervening lien, or that a refinancing lender should be denied subrogation if it fails to make any effort to check the public records, the court's explicit, sweeping holdings that equitable subrogation should be liberally granted, even in the face of a refinancing lender's ignorance or mistake, so long as the relief works no injustice on the rights of intervening lienors, would have been qualified by such a limitation.
If the former, what guidelines must the court follow in determining the amount of additional attorneys' fees when it is certain that the transferor will claim that the lienor has exaggerated the amount of the incurred fees?
There are also defenses available to the owner for a lienor's misapplication of designated funds to an open account, the lienor's failure to demand such designation; (22) and the failure of a lienor to be properly licensed to perform the construction work.
Specifically, far less guidance is offered from cases in which the issue was left to the court's subjective determination of whether the lienor was acting in good faith.
In Matrix, the lienor was doomed because his motion for enlargement of time was unauthorized as part of the special statutory proceedings and at the same time did not constitute "cause" sufficient to preclude the lien from being discharged.
A lienor who is not in contractual "privity" (9) with the owner must satisfy certain conditions precedent to perfect its right to a construction lien.
10 may be compromised, as lienors can claim that they were misled by the notice of commencement into believing that the landlord was performing the work.
307) However, Sword Services pointed out that maritime lienors have often been permitted to intervene in in rem actions without being required to seize the property or share in the custodia legis expenses.