Lien
Lien is a legal claim against the mortgaged property, a way of securing a loan.
When the borrower is not able to meet the contract, bank has the rights to sell the asset and collect their money back and interest.
Lien exist in two ways:
1. General lien is when the bank claims an asset until all obligations to the bank are cleared, and
2. Particular lien is when the bank claims an asset only until obligation against that asset is cleared.
| Related Terms: Blanket Lien No-Lien Affidavit |