Lien

A security interest in one or more assets that is granted to lenders in connection with secured debt financing. The New York Times Financial Glossary

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lien li‧en [ˈliːən, liːn] noun [countable] LAW

1. a person's or organization's right to another's property, usually the right of a lender to take a borrower's property if they fail to repay a loan, or the right of people owed money by a company to take the assets of that company if it goes out of business:

• It currently owes about $225 million to its lenders, who hold liens on all of the company's real estate assets.

2. exercise/​file/​place a lien to ask a law court to recognize that someone owes you money and to give you the right to take their assets to pay the debt:

• The city will file liens and judgments against properties that are one year behind in payment.

• The carrier may exercise a lien on the cargo for the unpaid freight.

ˈbroker's ˌlien

LAW INSURANCE the right of a broker to keep possession of an insurance policy until the client makes the payment for it

ˈcarrier's ˌlien LAW TRANSPORT

the right of a carrier to keep the goods they are delivering if the buyer does not pay the carriage costs that are due

ˌfederal ˈtax ˌlien LAW TAX

a lien where the national US tax authorities have the right to take a person's or organization's assets because they have not paid tax

ˌfirst ˈlien LAW FINANCE

a lien that gives one particular lender the right to take the assets of a person or organization that owes them money before anyone else receives payment:

• a mortgage constituting a first lien on the property

ˌgeneral ˈlien LAW FINANCE

a lien where the person or organization that is owed money has the right to take any of the assets of the person or organization that owes them money, even assets that are not related to that particular debt:

• The Carrier shall have a general lien against the owner of the goods for any monies whatever due from the Trader.

priˈority ˌlien LAW FINANCE

another name for first lien:

• Many states make the tax lien a priority lien.

ˌsecond ˈlien LAW FINANCE

a lien where the assets can be taken to pay debts only after other people and organizations that are owed money have been repaid:

• They said that they had second lien on the company's assets.

ˈseller's ˌlien LAW COMMERCE

a lien where a seller can take back goods sold to a buyer who has not paid for them

ˈtax ˌlien LAW TAX

a lien where the tax authorities have the right to take a person's or organization's assets because they have not paid tax:

• The bank was trying to cope with a $1.8 million Internal Revenue Service tax lien at the time of its collapse.

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   The right to take assets to cover an unpaid debt.

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lien UK US /ˈliːən/ noun [C] LAW

► an official order that allows someone to keep the property of a person who owes them money until the money has been paid back: »

This could occur where someone has a lien over the goods, i.e. a right to retain possession of them until a debt is paid.

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State law allows the city to put a lien on the property to grab its money when it's sold.

a lien against sth »

Officials want to place a lien against half of the home to ensure payment.

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The bank intends to hold a lien on the entire balance for the $400 due.

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claim/exercise/have a lien

→ See also BROKER'S LIEN(Cf. ↑broker's lien), CARRIER'S LIEN(Cf. ↑carrier's lien), FIRST LIEN(Cf. ↑first lien), GENERAL LIEN(Cf. ↑general lien), PRIORITY LIEN(Cf. ↑priority lien), SECOND LIEN LOAN(Cf. ↑second lien loan), SELLER'S LIEN(Cf. ↑seller's lien), TAX LIEN(Cf. ↑tax lien)