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voluntary lien

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Voluntary Lien
A consensual claim to the property of another as collateral to ensure the repayment of a debt. The lien is voluntary because the debtor agreed to it; the placement of a voluntary lien is often necessary in order to secure a loan. An example is the lien placed on real estate to guarantee a mortgage. A voluntary lien contrasts with an involuntary lien, which may be imposed by a court or other body for non-payment of a debt.

voluntary lien

An agreement to allow the use of specific property as collateral for a debt. Contrast with involuntary lien.



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MORTGAGES Mortgage states utilize a two party security system where a mortgagor (or borrower) provides a promissory note to a mortgagee (or lender), along with a voluntary lien called a mortgage that serves as security for the borrower's promise to make the loan payments described in the promissory note.
The first is a voluntary lien, which is basically a situation where you have agreed to use the asset as collateral for a debt, i.
MORTGAGES AND TRUST DEEDS A mortgage is a voluntary lien on a piece of real estate.
 
 
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