(leen or lee-an)
1. A legal right or interest that a creditor has in another’s property, lasting usually 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). — lien, vb. -lienable, liened, adj.
accountant’s lien. (1851) The right of an accountant to retain a client’s papers until the accountant’s fees have been paid.
agent’s lien. (1834) A lien against property of the estate, in favor of an a ant, to secure the agent’s compensa~ tion as well as a l necessary expenses incurred under the agent’s power.
> agister’s lien (Mia-tam). (1875) A lien on the animals under an agister’s care, to secure payment of the agister’s fee. See AGISTER; AGISTMENT.
P agricultural lien. (1876) l. A statutory lien that rotects a seller of farming equi ment by giving the sel er alien on crops grown with t e equi ment. 2. Secured transactions. An interest (other t an 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 ordinar course of business furnished goods or services to a ebtor 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).
> architect’s lien. (1901) 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.
> artisan’s lien. See mechanic’s lien.
> attachment lien. (1842) A lien on property seized by prejudgment attachment. 0 Such a lien is initially inchoate but becomes hnal 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. See ATTACHMENT.
p attorney’s lien. (1828) 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.
r auctioneer’s lien. (1895) The right of an auctioneer to retain property, goods, and documents held on the seller’s behalf until the winning bidder has paid all that is owed for what has been sold, including the buyer’s premium and any expenses or liabilities properly
incurred. p bailee’s lien. See BAILEE’S LIEN.
v banker’s lien. (1843) 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.
> blanket lien. (1876) A lien that gives a creditor the enti~ tlernent to take possession of any or all of the debtor’s real property to cover a delinquent loan.
5 carrier’s lien. (1855) A carrier’s right to retain possession of cargo until the owner of the cargo pays its shipping costs.
v» charging lien. (1861) 1. An attorney’s lien on a claim that the attorney has helped the client perfect, as through a judgment or settlement. 2. A lien on specihed property in the debtor’s possession.
, chattel lien. See mechanic’s lien.
chaste lien (koh it). (1882) 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 en forceahlc.
pcommon-lnw lien. (1828) l. A lien granted by the common law, rather than by statute, equity. or agreement by the parties. 2. The right of one person to retain possession of property belonging to another until certain demands of the possessing party are met. 0 This type of lien, unlike an equitable lien, cannot exist without possession.
r concurrent lien. (1876) One of two or more liens of equal priority attaching to the same property.
.construction lien. See mechanic’s lien.
v consummate lien (kan-sam-it). (1867) A judgment lien
arising after the denial of a motion for a new trial. Cf. inchoate lien.
r conventional lien. (1826) A lien that is created by the express agreement of the parties, in circumstances in Wl’llCl’l the law would not create a lien.
> deferred lien. (1875) A lien effective at a future date,
as distinguished from a present lien that is currently possessory.
> demurrage lien (di-mar-ij). (1918) A carrier’s lien on goods for any unpaid demurrage charges. See DEMURRAGE.
v dragnet lien. (1980) A lien that is enlarged to cover any additional credit extended to the debtor by the same creditor.
b equitable lien. (18c) 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. 0 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 improve~ ments 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.
>execution lien. (1859) A lien on property seized by a levy of execution. 0 Such alien gives the execution creditor priority over later transferees of the property and over prior unrecorded conveyances of interests in the property. See EXECUTION (3).
> factor’s lien. (1830) A lien, usu. statutory, on property held on consignment by a factor. 0 It allows the factor
to keep possession of the property until the account has been settled. See FACTOR (2).
o 61’s! lien. (18c) 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
proceeds from the property’s sale. –Also termed security’jirst security interest. r a hosting lien. Seejixed and floating charge (7
lloatlng lien. (1923) l. A lien that is ex andcd tourw-r any additional pro erty obtained by t a debtor while the debt is outstan ing. 2. A lien that continues to exist even when the collateral changes in character, classifica tion, or location. -Also termed flouting charge.
‘ garnishment lien. (1897) A lien on a debtor’s property held by a arntshee. 0 Such a lien attaches in favor or the garnishing creditor when a garnishment summon; is served and also impounds any credits the garnisheg owes the debtor so that they must be paid to the gar hishing creditor. -Also termed lien ufgarrllshmem,
’ general lien. (18c) A possessory lien by which the lien holder may retain any of the debtor’s goods in the lien holder’s possession until any debt due from the debtor, whether in connection with the retained goods or oth. erwise, has been paid. 0 Factors, insurance brokers, packers, stockbrokers, and bankers have a general lien over the property of their clients or customers. Cf. par.
“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. (1997) 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 healthcare services provided under a healthcare service plan or a disability insurance policy. Also termed medical lien. Cf. hospital lien; workers’~c0mpensation lien.
> hospital lien. (1934) A statutory lien asserted by a hospital to recover the costs of emergency and ongoing medical and other services. 0 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.
p hotelkeeper’s lien. (1875) 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.
r inchoate lien (in-koh-it). (1838) A judgment lien that may be defeated if the judgment is vacated or a motion for new trial is granted. Cf. consummate lien.
> innkeeper’s lien. See hotelkeeper’s lien.
> involuntary lien. (1889) A lien arising without the debtor’s consent.
,, judgment lien. (1831) A lien imposed on a judgment debtor’s nonexempt property. 0 This lien gives the udgment creditor the right to attach the judgment
debtor‘s property. -Also termed lien of judgment. See EXEMPT PROPERTY.
, judicial lien. (1890) A lien obtained b judgment, levy, sequestration, or other legal or equitab e process or pro» ceeding. 0 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 alien on s ecific property owned and possessed by the debtor. A er 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.
p junior lien. (1858) A lien that is subordinate to one or more other liens on the same property.
plaborer’s lien. See mechanic’s lien.
slandlord’s lien. (1844) 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. See DISTREss. 2. Generally, a statutory lien on a tenant’s personal property at the leased premises in favor of a landlord who receives preferredcreditor status on that property. 0 Such a lien usu. secures the payment of overdue rent or compensation for damage to the premises.
plien of attachment. See attachment lien.
r lieu of factor at common law. Hist. A lien not created by statute; a common-law lien.
rlien of garnishment. See garnishment lien. r lieu of judgment. See judgment lien. > lien of partners. See partner’s lien.
v manufacturer’s lien. (1860) A statutory lien that secures payment for labor or materials expended in producing goods for another. ’
a maritime lien. (1831) 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. .
“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 denned 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).
> mechanic’s lien. (1821) 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. –s Also termed lien of the mechanic; 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).
“The lien of the mechanic, here treated of, is a remedy in the nature of a charge on land, given by statute to the persons named therein, to secure a priority or preference of payment for the performance of labor or supply of materials to buildings or other improvements, to be enforced against the particular property in which they have become incorporated, in the manner and under the limitations therein expressly provided. it is exclusively the creature of statute, deriving its existence only from positive enactment, and not ans’ng out of, or of the essence of, the contract for labor, or dependent on the motives which suggest its being enforced,
it is a mere incidental accompaniment as a means of enforc’ ing payment, -a remedy given by law, which secures the preference provided for, but which does not exist, however equitable the claim may be, unless the arty brings himself within the provisions of the statute, an shows a substantial compliance with all its essential requirements. it is not a judgment, and does not give the mechanic a right to his debt, which arises out of the performance of contract, and exists without the aid of statute. it does not confer an independent right, or create an estate in the property itself, or give any interest which would sup ort an action of ejectment. It has, however, been hel to confer an insurable interest. The absolute ownership of land and powers incident to property are not in the slightest degree suspended by its operation; nor are prior encumbrances interfered with. It does not give any right of possession to the property, as against the owner; nor a right to have a receiver of rents and profits appointed pending the suit. The owner’s free enjoyment of the property will be inter~ fered with only when his use of it tends to its injury to such an extent as to impair its value as a security. It does not create, even after being judicially established by judgment or decree, any privity of estate, or right of entry thereunder, but is in the nature of a legal charge, running with the land, encumbering it in every change of ownership, and preventing subsequent alienations or encumbrances only by making them subordinate to the rights of the lien-holder.”
Samuel Phillips, A Treatise on the Law of Mechanics’ Liens on Real and Personal Property § 9, at 15-16 (1874).
> medical lien. See healthcare lien.
> mortgage lien. (1846) A lien on the mortgagor’s property securing the mortgage.
v municipal lien. (1851) A lien by a municipal corpora~ tion against a property owner for the owner’s proportionate share of a public improvement that specially and individually benefits the owner.
b particular lien. (1833) 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).
a» partner’s lien. (1870) A partner’s equitable lien on partnership property as security for the application of that property to partnership purposes; esp., a right to have the partnership property applied in payment of the partnership’s debts and to have whatever is due the firm from fellow partners deducted from what would otherwise be payable to them for their shares –Also termed lien of partners.
‘The lien of the partners is intended to secure whatever is due to or from the firm by or to the members thereof as such. it does not extend to debts incurred between the firm and its members otherwise than in their capacity as partners, and in case of the bankruptcy of a partner his assignees may claim his share without regard to such a
debt; as, for example, a debt for money borrowed by one
er from another for a purely private purpose of his
m” Floyd R. Mechem, Elements of the Law of Partnership 373-74 (2d ed. 1920).
D possessory garageman’s lien. (1975) A lien on a vehicle 111 the amount of the repairs performed by the garage.
possessory lien. (1840) A lien allowing the creditor to keep possession of the encumbered pmpcrty until the debt is satislied. 0 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. See PLEDGE.
r prime lien. (1903) A lien that arises and attaches after another validly recorded lien in such a way that the lien has equal or superior rights in the same collateral.
r prior lien. (18c) 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.
r retaining lien. (1861) An attorney’s right to keep a client’s papers until the client has paid for the attorney’s services. 0 The attorney’s retaining lien is not rec‘ ognized in some states.
> second lien. (1830) A lien that is next in rank after a first ‘lien on the same property and therefore is next entitled
tolsatisfaction out of the proceeds from the property’s sa e.
> secret lien. (1830) 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.
b senior lien. (1851) A lien that has priority over other liens on the same property.
> special lien. See particular lien.
> specific lien. (18c) A lien secured on a particular thing by a contract or by a judgment, execution, attachment, or other legal proceeding.
r statutory lien. (1827) l. A lien arising solely by force of statute, not by agreement of the parties. 0 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. 0 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.
> superlien. See SUPERLIEN.
» tax lien. (1852) l. A lien on property, and all rights to property, imposed by the federal government for unpaid federal taxes. 2. A lien on real estate in favor of a state or local government that may be foreclosed for nonpayment of taxes. 0 A majority of states have adopted the
Uniform Federal Tax Lien Registration Act.
>vendee’s lien. (1859) 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.
rvendor’s lien. (1830) 1. Real estate. A seller’s lien on land as security for the purchase price. 0 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. 2. A
lien held by a seller of goods, who retains possession of the goods until the buyer has paid in full.
voluntary lien. (1900) Alien created with the debtor’s consent.
varehouser’s lien. (i986) A lien covering stm Qhar es for goods stored with a bailee. Also tern…” Ware ouseman’s lien.
’ Workers’-compensatlon lien. (1976) l. A statutory)… asserted by a healthcare provider, to recover the cc, ’ of emergency and ongoing medical and other service 9 The lien applies against any workers’ compen n, benefits paid to a patient. 2. A statutory lien, as it led by a wor ers’-compensation insurance carrier, aga n
an insured worker’s recovery from a third part 1.,” feasor, to recover benefits paid to the injured wor ey Also termed workers’-compensalion subrogution lien Cf. healthcare lien.
litEnable, adj. (1855) (Of property) legally amenable to a lie capable of being subject to a lien. ,
lien account. See ACCOUNT.
lien avoidance. (1957) Bankruptcy. A debtor’s depriving a creditor of a security interest in an asset of the bankruptcy
estate. 11 USCA §§ 506(d), 522(1). lien creditor. See CREDITOR. lienee (leen-ee or lee-an-ee). (1853) 1. One whose property
is subject to a lien. 2. An encumbrancer who holds a lien; LIENHOLDER. Because the word is a “contronym” with Opposite senses, it is best avoided –along with its correlative lienor.
“[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).
lienholder. (1830) A person having or owning a lien. Also termed lienor; lienee.
lien of a covenant. (1916) The beginning portion of a covenant, stating the names of the parties and the character of the covenant.
lien of attachment. See attachment lien under LIEN. lien of factor at common law. See LIEN.
lien of garnishment. See garnishment lien under LIEN. lien of judgment. See judgment lien under LIEN.
lien of partners. See partner’s lien under LIEN.’ lienor. See LIENHOLDER.
lien-stripping. (1987) 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 tc modify the terms of the mortgage and reduce the amoun of the debt. 0 The U.S. Supreme Court has prohibited lien stripping in all Chapter 7 cases (Nobelman v. America Savs. Bank, 508 U.S. 324, 113 S.Ct. 2106 (1993)) andi Chapter 13 cases involving a debtor’s principal resident (Dewsnup v. Timm, 502 US. 410, 112 S.Ct. 773 (1992)), at the Bankruptcy Reform Act of 1994 modified the Ban ruptcy Code to prohibit lien-stripping in Chapter 11 ca: involving an individual’s principal residence.
lien theory. (1882) The idea that a mortgage resemble lien, so that the mortgagee acquires only a lien on‘ property and the mortgagor retains both legal 2 equitable title unless a valid foreclosure occurs. 0 N. American states commonly called lien states, lien jt dictions, or lien-theory jurisdictions –have adopted theory. Cf. TITLE THEORY.
lien waver: See WAIVER (3)
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