Unperfected Lien

Unperfected Lien

An invalid lien on the property of a borrower, usually resulting from a previous lien on the same property or simply poor record keeping. In a dispute or bankruptcy, a court normally treats unperfected liens as valid, provided there are no disputes from other parties.
References in periodicals archive ?
377) Delivery of an execution creates an unperfected lien against the taxpayer's personal property, but this execution lien would have been junior to all tax liens of the DTF.
438) The legislative history simply deepens the mystery, according to which the amendment "prevents the avoidance of unperfected liens against a bona fide purchaser, if the purchaser qualifies as such under section 6323 of the Internal Revenue Code or a similar provision under state or local law.
According to Larry Highbloom, president of VINtek, 'The Dealer Monitoring Program reduces and prevents the accumulation of unperfected liens for auto finance lenders of all sizes.