FT MarketWatch

Lien

A legal Claim against an Asset which is used to secure a Loan and which must be Paid when the Property is sold. Liens can be structured in many different ways. In some cases, the Creditor will have legal Claim against an asset, but not actually hold it in possession, while in other cases the Creditor will actually hold on to the Asset until the Debt is Paid off. The former is a more common arrangement when the Asset is productive, since the Creditor would prefer that the Asset be used to produce a stream of income to pay off Debt rather than just held in Possession and not used. A Claim can hold against an Asset until all the obligations to the Creditor are cleared (a general lien), or just until the obligations against that particular assets are cleared (a particular lien).

Related Terms: 22 Asset, At par, Clear, Claim, Credit, Creditor, Debt, ECU, General lien, Inc., Legal, Lien, Loan, Leg, Obligation, Property, Paid, Possession, Range, Rent, SEC, Session
Other Related Pages: Category: Real_Estate Starting With: L
Semi Related Terms: 676 CLICK HERE TO VIEW
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period, C shares, Class of options, Close to the money, Credit spread, Cash Against Documents, Certificate of Occupancy, Cloud on title, Cash or Deferred Arrangement, Capital Asset Pricing Model, Class A Shares, Class B Shares, Crash of 1929, Crash of 1987, Capital gains tax, Child and dependent care credit, Coefficient of determination, Cup and handle, Certificate of delivery, Close a position, Cornering the market, Curbs in, Debt service coverage, Deferred credit, Deposit in transit, Date of issue, Date of payment, Debt, Debt capital, Debt-equity swap, Debt financing, Debt limit, Debt market, Debt shelf, Day loan, Division of Enforcement, Division of Investment Management, Division of Market Regulation, Do Not Reduce, Date of record, Dividend in arrears, Desk (the), Division of labor, De-escalation clause, De facto, Doing business as, Durable Power of Attorney, Date of maturity, Debt consolidation, Debtor in possession, Debtor-in-possession financing, Debt retirement, Debt service, 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