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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
* Claim of Lien--To seek remedies against the owner of the property being improved, an unpaid lienor must record a claim of lien in the local county's official records within 90 days of final furnishing.
As was the case in Lake Eola, claims other than the lien foreclosure claim are often brought by the lienor in the same action.
Lienors should keep in mind that mechanic's liens must be filed in the county where the property is located (because of principles of in rem jurisdiction) and not in a county where either party does business, as would be allowable in a simple contract action (because of in personam jurisdiction) if that county is not where the project is located.
A lienor must file a civil action to enforce his lien within 120 days after the date on which the last services were provided.
* the name of the person by whom the lienor was employed or retained;
In order to maximize both the correct information being sought and the number of defenses available to the owner, it is vital that every lienor receiving notice be served by certified or registered mail with a demand for "sworn statement of account," pursuant to [section] 713.16(2).
This affidavit should contain a list of the subcontractors, materialmen and laborers (if any) with whom the contractor has direct contracts, and identify other known lienors who have not yet given notice on the job, as well as the amounts these third parties are due.
While lenders and servicers know this, our not-so-hypothetical attorney for the mechanic's lienor (or judgment creditor, among others) may be completely unaware of the consequences resulting from that seemingly innocuous answer he submitted.
The Fifth Circuit initially noted that the district court had the power to place conditions on the intervenor's participation in the seizure.(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.(308) The Fifth Circuit responded that "at most" this showed "that the district court was not required to condition intervention on Sword seizing the vessel, and sharing in the cost of maintaining her."(309) The Fifth Circuit concluded that "in its inherent powers to manage this litigation properly, the district court had the discretion to order a party to seize the vessel and divide the cost of the ship's maintenance among all the parties."(310)
The "story of the rose" tells no one story, but rather asks how many Lienors, how many stories are there?
In discussing this issue with colleagues, it was suggested that there might be some other creative options for ensuring the recovery of CPA fees, if not through a charging lien awarded to the accountant as lienor. One suggestion was a "stipulated judgment lien, signed by the client, that addresses both fees and costs." If this has been done in Florida with accountants as lienors, there is no reflection of it in reported appellate caselaw.
Further, the GC treated the sub as a potential lienor during the performance of the work by having the sub attend meetings and sign partial lien waivers in requesting payments, while the owner couldn't demonstrate any adverse impact caused by the error on the NTO.