Table of Contents
What is considered a lien?
A lien is a claim or legal right against assets that are typically used as collateral to satisfy a debt. If the underlying obligation is not satisfied, the creditor may be able to seize the asset that is the subject of the lien.
What is a lien in South African law?
In South African law this is called a lien. A lien is a “right” to retain physical control of another’s property as security for payment. The right of retention enables the creditor to retain the client’s (“the debtor”) property if the debtor fails to settle their account.
What are the examples of lien?
The definition of a lien is a claim on property as security to make sure someone repays money they’ve borrowed. An example of a lien is a bank holding the title to a car until the car loan has been completely paid.
What are the three types of liens?
Of the three types of liens (consensual, statutory and judgment,) the judgment lien is the most dangerous form, but one which the informed business owner may be able to eliminate. A judicial lien is created when a court grants a creditor an interest in the debtor’s property, after a court judgment.
What is lien law?
A right which entitles a party to hold on to assets in his possession pending payment of a debt owed. It can arise in the following ways: Equity. From the operation of law (a legal or common law lien). Bargained for, or extended, as a matter of contract (a contractual lien).
What is another word for lien?
In this page you can discover 17 synonyms, antonyms, idiomatic expressions, and related words for lien, like: charge, debenture, hold on property, claim, hypothecation, incumbrance, mortgagee, mortgagor, encumbrance, mortgage and right.
What is an enrichment lien?
An enrichment lien is a right of a possessor to retain a property of another in circumstances where the possessor has expended money or labour on that property and has yet to be compensated for that expenditure.
Is a lien a legal document?
A lien is usually a formal document signed by the party to whom money is owed and sometimes by the debtor who agrees to the amount due. A lien carries with it the right to sell property, if necessary, to obtain the money.
What is lien list out its types?
Example of Lien In order to afford the purchase, he borrows $300,000 from ABC Bank. If John is unable to meet his financial obligations according to the mortgage agreement with ABC Bank, the bank will take possession of the property and will be able to sell it to satisfy the loan obligation.
What type of lien is created by law?
Most non-consensual liens fall into two categories–those that are created by a law and those that are created by a court. Statutory liens. Non-consensual lien rights that are granted by a law are called statutory liens. Judicial liens.
What is the difference between lien and collateral?
You grant the lender a security interest in your property, and it means they have a lien. The lien secures the loan, so that if you don’t pay, the lender can take the property. The property you pledge to secure a loan is called collateral.
When can a lien be attached to a contract?
However, through an express contract they may attach in cases where the goods are to be held as an indemnity against a future contingent claim or damages. The claim for which the lien is asserted, must be due to the party claiming it in their own right and not merely as an agent of a third person.
What is a lien in law?
Lien is the right to retain the possession of the property of another till the other person meets the demands of the person in possession. Lien was in possession of the remedy and it was recognized as a right.
What is general lien under Indian Contract Act 1872?
Section 171 of the Indian Contract Act,1872 confer on Bailee the right of General Lien. General Lien is one which gives the right to possession until the whole balance of the amount is paid. The right of General lien can be claimed in respect of any goods for any change due in respect of other goods.
What are the rights of General Lien?
The right of General lien can be claimed in respect of any goods for any change due in respect of other goods. The banker’s Lien is a general lien and he can retain the goods for the satisfaction of a debt other than the one for which the goods are pledged.