(leen or lee-<<schwa>>n), n.
A legal right or interest that a creditor has in another's property, lasting usu. until a debt or duty that
it secures is satisfied.
Typically, the creditor does not take possession of the property on which the lien has been obtained.
Cf. PLEDGE(3). [Cases: Liens 1.C.J.S. Liens §§ 2–3, 12, 18.] — lien,vb. — lienable, liened,adj.
NOW PICK A FLAVOR:
- accountant's lien.
- The right of an accountant to retain a client's papers until the accountant's fees have been paid.
- agent's lien.
- A lien against property of the estate, in favor of an agent, to secure the agent's
compensation as well as all necessary expenses incurred under the agent's power.
[Cases: Principal and Agent 90. C.J.S. Agency § 357.]
- agister's lien
- A lien on the animals under an agister's care, to secure payment of the agister's fee.
See AGISTER; AGISTMENT. [Cases: Animals 26. C.J.S. Animals § 62.]
- agricultural lien.
- 1. A statutory lien that protects a seller of farming equipment by giving the seller a lien on crops grown with the equipment.
[Cases: Agriculture 10. C.J.S. Agriculture §§ 105, 113–114, 119–120.]
2.Secured transactions. An interest (other than a security interest) in farm products having three characteristics:
(1) it must secure payment or performance of an obligation for goods or services furnished in connection with a debtor's
farming operation, or of an obligation for rent on real property leased by a debtor in connection with farming;
(2) it must be created by statute in favor of a person either who in the ordinary course of business furnished goods or
services to a debtor in connection with the debtor's farming, or who leased real property to a debtor in connection with the
debtor's farming; and
(3) the effectiveness of the interest must not depend on the person's possession of the personal property.
UCC § 9-102(a)(5).
- 336.9-102 MS 1998 [Repealed, 2000 c 399 art 1 s 140]
336.9-102 DEFINITIONS AND INDEX OF DEFINITIONS.
- choate lien (koh-it).
- A lien in which the lienholder, the property, and the monetary amount are established so that the lien is perfected
and nothing else needs to be done to make it enforceable.
[Cases: Internal Revenue 4781; Liens 1, 12. C.J.S. Internal Revenue § 719; Liens§§ 2–3, 12, 14, 18.]
- attachment lien.
- A lien on property seized by prejudgment attachment.
Such a lien is initially inchoate but becomes final and perfected upon entry of a judgment for the attaching creditor and
relates back to the date when the lien first arose. — Also termed lien of attachment.
[Cases: Attachment 177; Federal Civil Procedure 589. C.J.S. Attachment §§ 203–205.]
- lien of attachment. See attachment lien.
- attorney's lien.
- The right of an attorney to hold or retain a client's money or property (a retaining lien) or to encumber money
payable to the client (a charging lien) until the attorney's fees have been properly determined and paid.
[Cases: Attorney and Client 171. C.J.S. Attorney and Client §§ 357–359.]
- banker's lien.
- The right of a bank to satisfy a customer's matured debt by seizing the customer's money or property in the bank's possession.
[Cases: Banks and Banking 134, 136. C.J.S. Banks and Banking §§ 293, 301–305, 312–313, 316.]
- blanket lien.
- A lien that gives a creditor the entitlement to take possession of any or all of the debtor's real property to cover a delinquent loan.
- carrier's lien.
- A carrier's right to retain possession of cargo until the owner of the cargo pays its shipping costs.
[Cases: Carriers 197. C.J.S. Aeronautics and Aerospace § 232; Carriers §§ 484, 486.]
- charging lien.
- 1. An attorney's lien on a claim that the attorney has helped the client perfect, as through a judgment or settlement.
[Cases: Attorney and Client 182. C.J.S. Attorney and Client § 359.]
2. A lien on specified property in the debtor's possession.
- artisan's lien.
- See mechanic's lien.
- chattel lien. See mechanic's lien.
- construction lien. See mechanic's lien.
- laborer's lien. See mechanic's lien.
- architect's lien.
- A statutory lien on real property in favor of an architect who has drawn the plans for and supervised the
construction of improvements on the property.
[Cases: Mechanics' Liens 36. C.J.S. Mechanics' Liens § 33.]
- common-law lien.
- 1. A lien granted by the common law, rather than by statute, equity, or agreement by the parties.
[Cases: Liens 1. C.J.S. Liens §§ 2–3, 12, 18.]
2. The right of one person to retain possession of property belonging to another until certain demands
of the possessing party are met.
This type of lien, unlike an equitable lien, cannot exist without possession.
- concurrent lien.
- One of two or more liens of equal priority attaching to the same property.
- consummate lien (k<<schwa>>n-s<<schwa>>m-it).
- A judgment lien arising after the denial of a motion for a new trial.
Cf. inchoate lien.
- conventional lien.
- A lien that is created by the express agreement of the parties, in circumstances in which the law would not create a lien.
- deferred lien.
- A lien effective at a future date, as distinguished from a present lien that is currently possessory.
- demurrage lien (di-m<<schwa>>r-ij).
- A carrier's lien on goods for any unpaid demurrage charges.
See DEMURRAGE. [Cases: Shipping 185. C.J.S. Shipping §§ 431, 439.]
- dragnet lien.
- A lien that is enlarged to cover any additional credit extended to the debtor by the same creditor.
[Cases: Secured Transactions 114. C.J.S. Secured Transactions § 83.]
- equitable lien.
- A right, enforceable only in equity, to have a demand satisfied from a particular fund or specific property,
without having possession of the fund or property.
It arises mainly in four circumstances:
(1) when an occupant of land, believing in good faith to be the owner of that land, makes improvements,
repairs, or other expenditures that permanently increase the land's value,
(2) when one of two or more joint owners makes expenditures of that kind,
(3) when a tenant for life completes permanent and beneficial improvements to the estate begun earlier
by the testator, and
(4) when land or other property is transferred subject to the payment of debts, legacies, portions, or annuities
to third persons. — Also termed equitable levy.
[Cases: Liens 7. C.J.S. Liens §§ 5–8.]
- execution lien.
- A lien on property seized by a levy of execution.
Such a lien gives the execution creditor priority over later transferees of the property and over prior unrecorded
conveyances of interests in the property.
See EXECUTION(3). [Cases: Execution 106. C.J.S. Executions § 137.]
- factor's lien.
- A lien, usu. statutory, on property held on consignment by a factor.
It allows the factor to keep possession of the property until the account has been settled.
[Cases: Factors 47.]
- first lien.
- A lien that takes priority over all other charges or encumbrances on the same property and that must be satisfied
before other charges may share in proceeds from the property's sale.
- floating lien.
- 1. A lien that is expanded to cover any additional property obtained by the debtor while the debt is outstanding.
[Cases: Secured Transactions 116. C.J.S. Secured Transactions § 85.]
2. A lien that continues to exist even when the collateral changes in character, classification, or location.
— Also termed floating charge.
- garnishment lien.
- A lien on a debtor's property held by a garnishee.
Such a lien attaches in favor of the garnishing creditor when a garnishment summons is served and also
impounds any credits the garnishee owes the debtor so that they must be paid to the garnishing creditor.
— Also termed lien of garnishment. See GARNISHMENT.
[Cases: Federal Civil Procedure 609; Garnishment 106.]
- F.R.C.P. RULE 64. SEIZING A PERSON OR PROPERTY
- DEFINITION FROM NOLO’S PLAIN-ENGLISH LAW DICTIONARY
A court-ordered procedure for taking money or property from someone to satisfy a debt.
For example, a debtor's wages might be garnished to pay child support, back taxes, or a lawsuit judgment.
- ADMINISTRATIVE WAGE GARNISHMENT 45 C.F.R. § 32.1 - § 32.12
- SEE FAIR LABOR STANDARDS ACT
codified at 29 U.S.C. et sec.
- general lien.
- A possessory lien by which the lienholder may retain any of the debtor's goods in the lienholder's possession
until any debt due from the debtor, whether in connection with the retained goods or otherwise, has been paid.
Factors, insurance brokers, packers, stockbrokers, and bankers have a general lien over the property of their
clients or customers. Cf. particular lien.
“The usage of any trade sufficient to establish a general lien, must ... have been so uniform and notorious,
as to warrant the inference that the party against whom the right is claimed had knowledge of it. This general
lien may also be created by express agreement; as, where one or more persons give notice that they will not
receive any property for the purpose of their trade or business, except on condition that they shall have a lien
upon it, not only in respect to the charges arising on the particular goods, but for the general balance of
account. All persons who afterwards deal with them, with the knowledge of such notice, will be deemed to
have acceded to that agreement.”
2 James Kent, Commentaries on American Law *637 (George Comstock ed., 11th ed. 1866).
- grantor's lien.
- See vendor's lien (1).
- healthcare lien.
- A statutory lien asserted by an HMO, insurer, medical group, or independent practice association against those
liable to the patient for damages, to recover money paid or claim money payable for health care services
provided under a healthcare service plan or a disability insurance policy.
— Also termed medical lien. Cf. hospital lien; workers'-compensation lien.
- medical lien. See healthcare lien.
- hospital lien.
- A statutory lien asserted by a hospital to recover the costs of emergency and ongoing medical and other services.
The lien applies against any judgment, compromise, or settlement received by a hospital patient either from a
third person who caused the patient's injuries or from the third person's insurer. See healthcare lien.
- hotelkeeper's lien.
- A possessory or statutory lien allowing an innkeeper to hold, as security for payment, personal property that
a guest brought into the hotel. — Also termed innkeeper's lien.
[Cases: Innkeepers 13. C.J.S. Inns, Hotels and Eating Places § 19.]
- innkeeper's lien. See hotelkeeper's lien.
- inchoate lien (in-koh-it).
- A judgment lien that may be defeated if the judgment is vacated or a motion for new trial is granted.
Cf. consummate lien.
- involuntary lien.
- A lien arising without the debtor's consent.
- judgment lien.
- A lien imposed on a judgment debtor's nonexempt property.
This lien gives the judgment creditor the right to attach the judgment debtor's property.
— Also termed lien of judgment. See EXEMPT PROPERTY.
[Cases: Federal Civil Procedure 2671; Judgment 752–802. C.J.S. Judgments §§ 551–616.]
- judicial lien.
- A lien obtained by judgment, levy, sequestration, or other legal or equitable process or proceeding.
If a debtor is adjudged to owe money to a creditor and the judgment has not been satisfied, the
creditor can ask the court to impose a lien on specific property owned and possessed by the debtor.
After the court imposes the lien, it usu. issues a writ directing the local sheriff to seize the property,
sell it, and turn over the proceeds to the creditor.
[Cases: Federal Civil Procedure 2671; Judgment 752. C.J.S. Judgments § 552.]
- junior lien.
- A lien that is subordinate to one or more other liens on the same property.
- landlord's lien.
- 1. At common law, a lien that gave a landlord the right to seize a tenant's property and sell it publicly to satisfy overdue rent.
2. Generally, a statutory lien on a tenant's personal property at the leased premises in favor of a landlord who receives
preferred-creditor status on that property.
Such a lien usu. secures the payment of overdue rent or compensation for damage to the premises.
[Cases: Landlord and Tenant 239–257. C.J.S. Landlord and Tenant §§ 605–609, 611–615, 619–634, 636, 638, 640–657.]
- lien of factor at common law.Hist.
- A lien not created by statute; a common-law lien.
[Cases: Factors 47.]
- lien of judgment.
- See judgment lien.
- workers'-compensation lien.
- 1. A statutory lien, asserted by a healthcare provider, to recover the costs of emergency and ongoing medical and other services.
The lien applies against any workers'-compensation benefits paid to a patient.
2. A statutory lien, asserted by a workers'-compensation insurance carrier, against an insured worker's recovery from a third-party
tortfeasor, to recover benefits paid to the injured worker.
— Also termed workers'-compensation subrogation lien. Cf. healthcare lien.
- warehouser's lien.
- A lien covering storage charges for goods stored with a bailee.
— Also termed warehouseman's lien.
[Cases: Warehousemen 29. C.J.S. Warehousemen and Safe Depositaries § 106.]
- voluntary lien.
- A lien created with the debtor's consent.
- vendor's lien.
- 1.Real estate. A seller's lien on land as security for the purchase price.
This lien may be foreclosed in the same way as a mortgage: the buyer usu. has a redemption period within which
to pay the full purchase price. — Also termed grantor's lien.
[Cases: Vendor and Purchaser 246. C.J.S. Vendor and Purchaser §§ 529–530.]
2. A lien held by a seller of goods, who retains possession of the goods until the buyer has paid in full.
[Cases: Sales 300. C.J.S. Sales § 328.]
- vendee's lien. Real estate.
- A buyer's lien on the purchased land as security for repayment of purchase money paid in, enforceable if the
seller does not or cannot convey good title.
[Cases: Vendor and Purchaser 337. C.J.S. Vendor and Purchaser §§ 639, 653–654.]
- tax lien.
- 1. A lien on property, and all rights to property, imposed by the federal government for unpaid federal taxes.
[Cases: Internal Revenue 4765–4806. C.J.S. Internal Revenue §§ 499, 715–720, 751, 753–756, 759, 762, 764, 766–767; Social Security and Public Welfare§ 202.]
2. A lien on real estate in favor of a state or local government that may be foreclosed for nonpayment of taxes.
A majority of states have adopted the Uniform Federal Tax Lien Registration Act.
[Cases: Taxation 501, 902, 1090, 1320. C.J.S. Social Security and Public Welfare § 202; Taxation §§ 824, 828–829, 834, 1779, 1972–1975, 2065.]
- See SUPERLIEN.
- statutory lien.
- 1. A lien arising solely by force of statute, not by agreement of the parties.
Examples are federal tax liens and mechanic's liens.
2.Bankruptcy. Either of two types of liens:
(1) a lien arising solely by force of a statute on specified circumstances or conditions, or
(2) a lien of distress for rent, whether or not statutory.
For bankruptcy purposes, a statutory lien does not include a security interest or judicial lien,
whether or not the interest or lien arises from or is made effective by a statute.
[Cases: Bankruptcy 2580, 2583. C.J.S. Bankruptcy § 130.]
- second lien.
- A lien that is next in rank after a first lien on the same property and therefore is
next entitled to satisfaction out of the proceeds from the property's sale.
- secret lien.
- A lien not appearing of record and unknown to purchasers; a lien reserved by the vendor
and kept hidden from third parties, to secure the payment of goods after delivery.
- senior lien.
- A lien that has priority over other liens on the same property.
- special lien.
- See particular lien.
- specific lien.
- A lien secured on a particular thing by a contract or by a judgment, execution, attachment, or other legal proceeding.
- retaining lien.
- An attorney's right to keep a client's papers until the client has paid for the attorney's services.
The attorney's retaining lien is not recognized in some states.
[Cases: Attorney and Client 182(3). C.J.S. Attorney and Client §§ 376–377.]
- possessory garageman's lien.
- A lien on a vehicle in the amount of the repairs performed by the garage.
[Cases: Automobiles 374. C.J.S. Motor Vehicles §§ 1627–1629, 1631–1633, 1639–1677.]
- possessory lien.
- A lien allowing the creditor to keep possession of the encumbered property until the debt is satisfied.
A power of sale may or may not be combined with this right of possession.
Examples include pledges of chattels, the liens of innkeepers, garageman's liens, and vendor's liens.
- prior lien.
- A lien that is superior to one or more other liens on the same property, usu. because it was perfected first.
— Also termed priority lien.
- particular lien.
- A possessory lien by which the possessor of goods has the right to retain
specific goods until a debt incurred in connection with those goods has been paid. — Also termed
special lien. Cf. general lien.
“A general lien is the right to retain the property of another, for a general balance of accounts;
but a particular lien is a right to retain it only for a charge on account of labor employed or
expenses bestowed upon the identical property detained.
The former is taken strictly, but the latter is favored in law. The right rests on principles of natural
equity and commercial necessity, and it prevents circuitry of action, and gives security and confidence ....” 2
James Kent, Commentaries on American Law *634 (George Comstock ed., 11th ed. 1866).
- municipal lien.
- A lien by a municipal corporation against a property owner for the owner's proportionate share of a public
improvement that specially and individually benefits the owner.
[Cases: Municipal Corporations 519. C.J.S. Municipal Corporations §§ 1388–1389, 1391–1392.]
- mortgage lien.
- A lien on the mortgagor's property securing the mortgage.
[Cases: Mortgages 145. C.J.S. Mortgages §§ 198, 200.]
- mechanic's lien.
- A statutory lien that secures payment for labor or materials supplied in improving, repairing, or maintaining real or
personal property, such as a building, an automobile, or the like.
— Also termed artisan's lien; chattel lien (for personal property); construction lien (for labor); garageman's lien
(for repaired vehicles); laborer's lien (for labor); materialman's lien (for materials).
[Cases: Bailment 18(2); Mechanics' Liens 1. C.J.S. Bailments §§ 80–81, 84; Mechanics' Liens§ 2.]
- maritime lien.
- .A lien on a vessel, given to secure the claim of a creditor who provided maritime services to the vessel or
who suffered an injury from the vessel's use. — Also termed tacit hypothecation.
[Cases: Maritime Liens 1. C.J.S. Maritime Liens §§ 2–3, 7, 13, 16.]
- “The maritime lien has been described as one of the most striking peculiarities of Admiralty
law, constituting a charge upon ships of a nature unknown alike to common law and equity. It
arises by operation of law and exists as a claim upon the property, secret and invisible. A maritime
lien may be defined as:
(1) a privileged claim,
(2) upon maritime property,
(3) for service done to it or injury caused by it,
(4) accruing from the moment when the claim attaches,
(5) travelling with the property unconditionally,
(6) enforced by means of an action in rem.”
Griffith Price, The Law of Maritime Liens 1 (1940).
- manufacturer's lien.
- A statutory lien that secures payment for labor or materials expended in producing goods for another.
- lien waiver. See WAIVER(2).
- lien-stripping. Bankruptcy.
The practice of splitting a mortgagee's secured claim into secured and unsecured components and reducing
the claim to the market value of the debtor's residence, thereby allowing the debtor to modify the terms of
the mortgage and reduce the amount of the debt.
The U.S. Supreme Court has prohibited lien-stripping in all Chapter 7 cases
(Nobelman v. American Savs. Bank, 508 U.S. 324, 113 S.Ct. 2106 (1993))
and in Chapter 13 cases involving a debtor's principal residence
(Dewsnup v. Timm, 502 U.S. 410, 112 S.Ct. 773 (1992)),
and the Bankruptcy Reform Act of 1994 modified the Bankruptcy Code to prohibit lien-stripping in Chapter 11
cases involving an individual's principal residence.
[Cases: Bankruptcy 2575. C.J.S. Bankruptcy § 110.]
- lien state.See LIEN THEORY.
- LIEN THEORY
- lien theory.
The idea that a mortgage resembles a lien, so that the mortgagee acquires only a lien on the property and the mortgagor
retains both legal and equitable title unless a valid foreclosure occurs.
Most American states — commonly called lien states, lien jurisdictions, or lien-theory jurisdictions — have adopted this theory.
Cf. TITLE THEORY.
[Cases: Mortgages 136. C.J.S. Mortgages § 183.]
- lienor. See LIENHOLDER.
LIEN OF JUDGMENT
- lien of judgment. See judgment lien under LIEN.
LIEN OF GARNISHMENT
- lien of garnishment. See garnishment lien under LIEN.
LIEN OF FACTOR AT COMMON LAW
- lien of factor at common law. See LIEN.
LIEN OF ATTACHMENT
- lien of attachment. See attachment lien under LIEN.
LIEN OF A COVENANT
- lien of a covenant.
The beginning portion of a covenant, stating the names of the parties and the character of the covenant.
- lien jurisdiction. See LIEN THEORY.
A person having or owning a lien. — Also termed lienor; lienee.
- lienee (leen-eeor lee-<<schwa>>n-ee).
1. One whose property is subject to a lien.
2. An encumbrancer who holds a lien; LIENHOLDER.
“[A] mortgagee is the owner of the property, while a pledgee or other lienee is merely an encumbrancer of it.”
John Salmond, Jurisprudence 440 (Glanville L. Williams ed., 10th ed. 1947).
- lien creditor. See CREDITOR.
- lien avoidance. Bankruptcy.
A debtor's depriving a creditor of a security interest in an asset of the bankruptcy estate.
11 USCA §§ 506(d), 522(f).
[Cases: Bankruptcy 2571–2588, 2784. C.J.S. Bankruptcy §§ 110, 121, 123–125, 127, 129–132, 177–180.]
- 11 USC § 506 - Determination of secured status
- lien account. See ACCOUNT.
(Of property) legally amenable to a lien; capable of being subject to a lien.
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