Meaning & Definition of word "Lien"

Lien

/liːən/

1. A legal right or interest that a lender has in the borrower's property, granted until the debt obligation is satisfied.
- Example: The bank placed a lien on the house after the homeowner failed to make mortgage payments.
2. The right to keep possession of property belonging to another person until a debt owed by that person is discharged.
- Example: The contractor filed a lien on the property to secure payment for the work completed.
3. A claim against an asset, typically used to secure a loan.
- Example: Investors were cautious due to the existing lien on the company's assets.
4. A charge against property or assets to secure the satisfaction of a debt.
- Example: The lien was released once the debtor paid the full amount owed to the creditor.

●From Middle English 'lien', derived from Old French 'lien' meaning 'to bind'.

mechanic's lien:

A specific type of lien placed by a contractor against a property for unpaid work.

tax lien:

A legal claim by a government entity against the assets of an individual or business for unpaid taxes.

judgment lien:

A lien placed on a debtor's property after a court judgment has been made in favor of the creditor.

artisan's lien:

A lien that gives a craftsman the right to retain possession of a piece of work until they are paid.

encumbrance:

A claim or liability attached to a property.

foreclosure:

The legal process by which a lender takes possession of a property when the borrower defaults on payments.

collateral:

An asset that a borrower offers to a lender to secure a loan.

Meaning: Used informally to refer to a heavy burden or obligation.

● Example Sentence: I feel like I have a lien on my time with all this work.