Lien Meaning and Definition

Pronunciation

/liːn/ 🔊

Part of Speech

Noun

Definition

A lien is a security interest in property that is given by a debtor to a creditor as collateral for a loan or debt. It is a legal right to take possession of the property if the debtor defaults on the loan or debt.

Examples

• The bank placed a lien on the house until the mortgage was paid in full.
• A mechanic’s lien can be placed on a car until the repairs are paid for.

Synonyms

• Security interest
• Collateral

Antonyms

• Release
• Liberation

Additional Information

Liens can be voluntary, such as when a debt is secured by a vehicle or property, or involuntary, such as when a creditor places a lien on property without the debtor’s consent. Liens can also be used to secure taxes owed to the government.

In the United States, the Uniform Commercial Code (UCC) governs the creation and enforcement of liens. There are different types of liens, including mechanics’ liens, tax liens, and mortgage liens.

Liens can have serious consequences for debtors, including the loss of property or financial instability. Therefore, it is essential to understand the requirements for creating and enforcing liens and to seek professional advice if needed.

Etymology

The word “lien” comes from the Old French word “lien,” which means “bond” or “connection.” It has been used in English since the 14th century to describe a security interest in property.

Usage Notes

Liens are commonly used in commercial and financial contexts, such as lending and borrowing agreements. They can also be used in personal finance, such as when securing a mortgage or auto loan.

When using the word “lien,” it is essential to consider the context and the type of lien being referred to.

Cultural References

The concept of a lien is widely referenced in popular culture, often in the context of personal finance and commerce.

In literature and film, liens are often depicted as a means of securing property or debt, highlighting the importance of understanding their implications.

Idiomatic Expressions or Phrases

There are no common idiomatic expressions or phrases that include the word “lien.” However, the concept of a lien is often used to illustrate the idea of security or collateral.

Related Words or Phrases

Some related words or phrases include:

• Security interest
• Collateral
• Default
• Foreclosure

Collocations

Common collocations with the word “lien” include:

• Mortgage lien
• Tax lien
• Mechanics’ lien
• Security lien

Frequency of Use

The word “lien” is less common than other financial terms, but is still relevant and important in commercial and personal finance contexts.

Liens are often used in high-stakes financial transactions, such as property sales or large loans.

Common Misspellings

Some common misspellings of the word “lien” include:

• lean
• lien’s
• leinn