Verbull Word of the day
Finance glossary

Lien

Banking · intermediate
Definition

A legal claim on an asset to secure a debt.

A lien gives a creditor the legal right to a borrower asset until a debt is repaid, and to seize or force its sale on default. Mortgages and tax liens are common examples. A lien must usually be cleared before the asset can be sold with clean title.

In a sentence

The contractor placed a lien on the house until the unpaid bill was settled.

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