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lien
noun
, ˈlē-ən
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Definition of lien
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Examples of lien in a Sentence
Recent Examples on the Web
Welcome to the multimillion-dollar collection of Art Lending Fund, a Westwood investment fund that doesn’t own the works but has a secured a lien against each piece in case the owner can’t pay up. — Los Angeles Times, "How the rich get spending money: Locking fine art in storage and borrowing against it," 1 Aug. 2019 Single-family homeowners have two years to pay delinquent taxes before the tax lien is auctioned. — Rebekah L. Sanders, azcentral, "County officials still hammering out details of plan to save veteran's mobile home," 12 July 2019 This week the company saw the price for its first-lien loan due in 2023 fall to an all-time low bid of 95.875, according to data compiled by Bloomberg. — Bloomberg Wire, Dallas News, "China tariffs' impact on arts and crafts retailer Michaels worries investors," 21 June 2019 Customers repay the loans through a property tax assessment that’s recorded as a lien. — Ron Hurtibise, Sun-Sentinel.com, "Will new federal rules slow PACE of energy-efficiency storm-hardening home upgrade program?," 13 June 2018 Can individuals, solely or collectively, put a lien on another person’s property? — Benny L. Kass, chicagotribune.com, "Should unmarried couples sign a contract before moving in together?," 3 Apr. 2018 The city plans broad outreach, but those who don’t comply would face citations, fines and liens. — Kathleen Pender, SFChronicle.com, "Mill Valley on verge of adopting aggressive vegetation-removal ordinance," 9 Aug. 2019 These reports can include property data, tax payment status, rental applications, collection accounts, bankruptcies, liens, judgments and child support obligations. — Janna Herron, USA TODAY, "Equifax settlement 2019: How to protect yourself beyond a credit freeze," 22 July 2019 In one case, Diamond noted, a ward sent a letter to the Clerk of Court’s office saying a lien had been put on a storage unit holding all of her belongings because Fierle did not pay a $299 bill. — Monivette Cordeiro, orlandosentinel.com, "Unauthorized DNRs spark concerns for other clients of Orlando guardian — 'I don’t want to die’ | Exclusive," 19 July 2019These example sentences are selected automatically from various online news sources to reflect current usage of the word 'lien.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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More Definitions for lien
lien
nounFinancial Definition of lien
What It Is
A lien is a lender's claim against a collateral asset that may be legally sold should the borrower fail to repay a loan.
How It Works
When someone takes out a sizeable loan, such as a home mortgage or an auto loan, the lender often requires an asset that can be held as collateral against the loan. Thus, the collateral has a lien placed upon it. In the event of non-payment on the part of the borrower, the lending institution can exercise the lien and sell the collateral asset to offset the unpaid loan. Once the loan is repaid in full, the collateral asset is returned to the borrower and the lien dissolved.
To illustrate, suppose someone takes out a $10,000 loan for a new car. As part of the loan's terms, the bank gets to hold the title to the car as a lien against the car until the loan is fully repaid. Should the borrower, at any point, default or refuse to repay the balance of the loan, the bank can use the title to the car to sell it in order to recover the money that was lent.
Why It Matters
A lien protects lenders in the event of non-payment. Since loans with collateral are less risky for the lender, they can lead to lower interest rates for the borrower.
When purchasing a used car, for example, it's important to check for liens against the vehicle. If there is an outstanding debt on the car, the buyer runs the risk of having it repossessed by the lender.
Source: Investing Answers
judgment lien
nounFinancial Definition of judgment lien
What It Is
A judgment lien allows a creditor to take possession of a piece of a debtor's property if the debtor does not pay his or her debts.
How It Works
Let's say John Doe owns a pit bull breeding company that borrows $1 million from Bank XYZ. Sales aren't going so well, and John falls behind in the payments to Bank XYZ. Bank XYZ obtains a judgment lien, which allows it to seize his house, car and any other assets necessary to get the $987,465 outstanding balance repaid in full if John does not start making regular payments again. If John does not comply, Bank XYZ simply repossesses and sells the assets.
Judgment liens are also common in cases where a person's insurance doesn't cover the full amount of a judgment resulting from damages in a car accident or other situation.
There are different kinds of judgments. A default judgment, for example, occurs in favor of the plaintiff when the defendant fails to appear in court to defend himself or does not respond to a summons. A deficiency judgment occurs when the sale of a seized piece of property does not generate enough cash to pay the judgment and the court has to place a lien on more property.
Why It Matters
The laws on judgment liens vary by state and by jurisdiction. However, the intent of most judgment liens is to compel the borrower to repay the creditor.
Source: Investing Answers
tax lien
nounFinancial Definition of tax lien
What It Is
A tax lien is a claim placed on a piece of real estate by a tax authority due to a taxpayer's failure to pay taxes.
How It Works
When a taxpayer fails to pay either income taxes or property taxes, the taxing authority to whom the debt is owed may place a lien against the taxpayers property to ensure that the tax liability will eventually get paid. A property with a tax lien cannot be sold by the owner, which prevents the owner from walking away from the tax liability.
Why It Matters
Tax liens are highly effective for tax enforcement since the property holder can not sell a property that has a lien on it. The taxing authority will keep a lien on the property until the tax liability is paid.
Tax liens can be purchased by investors as an investment. Such investments are considered solid since they are tied to a hard asset.
Source: Investing Answers
lien
noun
English Language Learners Definition of lien
See the full definition for lien in the English Language Learners Dictionary
lien
noun
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Medical Definition of lien
Other Words from lien
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adjective
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lien
noun
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