A legal claim against an asset which is used to secure a loan and which must be paid when the property is sold. Liens can be structured in many different ways. In some cases, the creditor will have legal claim against an asset, but not actually hold it in possession, while in other cases the creditor will actually hold on to the asset until the debt is paid off. The former is a more common arrangement when the asset is productive, since the creditor would prefer that the asset be used to produce a stream of income to pay off debt rather than just held in possession and not used. A claim can hold against an asset until all the obligations to the creditor are cleared (a general lien), or just until the obligations against that particular assets are cleared (a particular lien).
Related information about lien:
- Lien - Wikipedia, the free encyclopedia
In law, a lien is a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation. The owner of ...
- lien - Legal Dictionary - The Free Dictionary
A right given to another by the owner of property to secure a debt, or one created by law in favor of certain creditors. A lien is an encumbrance on one person's ...
- Lien - Definition and More from the Free Merriam-Webster Dictionary
a charge upon real or personal property for the satisfaction of some debt or duty ordinarily arising by operation of law. 2. : the security interest created by a ...
- Understanding a Federal Tax Lien
Sep 5, 2012 ... The lien protects the government's interest in all your property, including real estate, personal property and financial assets. A federal tax lien ...
- What is a Lien?
A lien is a legal claim or hold on a piece of property. A lien can prevent the property from being sold, so it is very important to...
- Lien Definition | Investopedia
The legal right of a creditor to sell the collateral property of a debtor who fails to meet the obligations of a loan contract. A lien exists, for example, when an ...
- Liens | California Franchise Tax Board
Liens; Why a Notice of State Tax Lien is recorded or filed; Force and effect of a state ... A lien is a legal claim to secure a debt and may encumber real or personal ...
- Lien | Define Lien at Dictionary.com
Law. the legal claim of one person upon the property of another person to secure the payment of a debt or the satisfaction of an obligation. Relevant Questions ...