Lien
A lien is a legal claim or right against a property that is held by a creditor as security for a debt. 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 the property, known as the lienee, grants the lien to the creditor, known as the lienor. The lienor has the right to take possession of the property if the lienee fails to meet the obligations secured by the lien.
History of the Term
The concept of a lien has been around since ancient times. In Roman law, a lien was known as a “pignus” and was used to secure the payment of a debt. The term “lien” is derived from the Latin word “ligare” which means “to bind”. In English common law, a lien was known as a “charge” and was used to secure the payment of a debt. The modern concept of a lien was developed in the 19th century and is now recognized in most legal systems.
Comparison Table
| Type of Lien | Security Interest | Rights of Lienor |
|---|---|---|
| General Lien | All assets | Right to take possession of all assets |
| Specific Lien | Specific asset | Right to take possession of specific asset |
| Possessory Lien | Possessed asset | Right to retain possession of asset |
Summary
A lien is a legal claim or right against a property that is held by a creditor as security for a debt. The lienee grants the lien to the lienor, who has the right to take possession of the property if the lienee fails to meet the obligations secured by the lien. There are three types of liens: general, specific, and possessory. For more information about liens, you can visit websites such as Investopedia, The Balance, and Nolo.
See Also
- Mortgage
- Security Interest
- Debt
- Foreclosure
- UCC Financing Statement
- Judgment Lien
- Tax Lien
- Mechanic’s Lien
- Garnishment
- Levy
