Lien

A lien is a legal charge on a person’s property that secures payment or performance of a debt or other obligation. Lien can be:

1. Security Lien: Creates a security interest in collateral for a loan.2. Mechanics Lien: Ensures payment for auto repairs from mechanics.3. Purchase Money Lien: Holds funds until a purchase is complete.4. Tax Lien: Prevents individuals from disposing of property due to unpaid taxes.5. Judgment Lien: Secures debts arising from a court judgment.

Types of Liens:

• Detinue Lien: Prevents removing property from a person’s possession until debt is paid.
• Encumbrance Lien: Reduces the value of a property without giving the owner full control.
• Security Interest: Grants a lender a claim on collateral if the loan is not paid.

Common Examples:

• A mechanic’s lien on a car for repairs.
• A security interest on a house used as collateral for a mortgage loan.
• A lien on a car due to unpaid parking tickets.

Additional Resources:

• Investopedia: Lien Definition & Types
• Nolo: Understanding Liens
• Vermont Law Help: Liens and Security Interests