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claim or charge held by one party, on property owned by a second party, as security for payment of some debt, obligation, or duty owed by that second party. A lien may arise by agreement between the parties or by operation of law from the relation of the parties or the circumstances of their dealings. A special lien applies only to a specific property and any obligations related to it. A general lien can be enforced on a property for any unfulfilled debt in similar lines of business. Laborer's liens establish priority for the payment of employees in favor of general creditors in cases of bankruptcy; mechanic's liens similarly provide priority for the payment of contractors who provided goods and services for building projects. The holder of a first lien takes precedence over all other encumbrances on a piece of property. A tax lien is held by the state or federal government on property which may be foreclosed for nonpayment of taxes.


A legal charge against property which is made securely for the payment of a debt or for the performance of an obligation.


A right enforceable against specific property to secure payment of an obligation.


Law a right to retain possession of another's property pending discharge of a debt
References in periodicals archive ?
Freedom from claims means that there is superior title to that of other transferees, such as prior or subsequent purchasers and lienholders, as well as bankruptcy trustees vested with the powers of hypothetical purchasers and creditors.
1985) (holding statutory "aggregate value of all liens" means the full amount of all debt secured by the liens, and noting the alternative would violate "the well-established rule that the bankruptcy court should not order the sale of property free and clear of interests and liens unless the court is satisfied that the sale proceeds will fully compensate the secured lienholders and produce some equity for the estate"), aff'd, 983 F.
5) "Surrender" means to return the collateral to the lienholder pursuant to 11 U.
What is required by a bank or lienholder for financed property or vehicles?
Unless a party, such as a mortgagee or other lienholder, submits a claim, excess funds are refunded to the taxpayer.
Once included in the sale, the property can face eventual foreclosure by the lienholder if the owner does not keep up with future payments.
In effect, the city's position is that federal remedies for lienholders who receive insufficient notice are inadequate, because they do not allow a lienholder to discharge the lien while retaining their right to bring suit.
Mirabile, found liable for cleanup of the site, had sought to bring the bank into the suit as a codefendant based on American's status as lienholder.
Without such an explicit provision, the doctrine of merger may prevent the senior lienholder from exercising his or her lien.
If she can find such a company, then she still has to list you and the finance company on the insurance as owner and lienholder, respectively.
Failure to use the insurance proceeds in accordance with a security agreement between you and a lienholder, if any, may constitute the criminal offense of defrauding a secured creditor in violation of Arkansas Code Section 5-37-203.
This would cause the primary lienholder to have to bear all of the costs while receiving little of the benefit.