What is the right of lien?
A lien provides a creditor with the legal right to seize and sell the collateral property or asset of a borrower who fails to meet the obligations of a loan or contract. The owner cannot sell the property that is the subject of a lien without the consent of the lien holder.
What is the full meaning of lien?
lien. noun. ˈlēn. : a charge or encumbrance upon property for the satisfaction of a debt or other duty that is created by agreement of the parties or especially by operation of law. specifically : a security interest created especially by a mortgage.
Who gets right of particular lien?
Lien is the right of an individual to retain goods and securities in his possession that belongs to another until certain legal debts due to the person retaining the goods are satisfied. Lien does not endorse a power of sale but only to retain the property.
What is the right of the holder of a lien?
In general, the right of the holder of the lien is confined to the mere right of retainer. However, when the creditor has made advances on the goods of a factor, he is generally invested with the right to sell. In some cases where the lien would not confer power to sell, a court of equity would decree it.
What does lien mean in law?
BREAKING DOWN 'Lien'. Once executed, a lien becomes the legal right of a creditor to sell the collateral property of a debtor who fails to meet the obligations of a loan or other contract.
What is a general lien?
A general lien refers to the right to retain goods and securities of a particular debt but in respect of the general balance that is due by the owner of the goods and securities, to the individual who is in possession of the goods. This may be conferred by an agreement to that effect or by custom and usage or by the provisions of any statue.