What is lien?

Consumer Voice - - Legal Matters -

A lien is the right of a cred­i­tor in pos­ses­sion of goods, se­cu­ri­ties or any other as­sets be­long­ing to the debtor to re­tain them un­til the debt is re­paid, pro­vided that there is no con­tract ex­press or im­plied to the con­trary. It is a right to re­tain pos­ses­sion of spe­cific goods or se­cu­ri­ties or other mov­ables of which the own­er­ship vests in some other per­son, and the pos­ses­sion can be re­tained till the owner dis­charges the debt or obli­ga­tion to the posses­sor.

Thus, it is a le­gal claim by one party on the prop­erty of another as se­cu­rity for pay­ment of a debt.

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