loans

lien

A legal right or claim against an asset that is typically used as security to ensure a debt is repaid.

Example

"The bank placed a lien on the house until the mortgage was fully paid off."

💡 Memory Tip

A LIEN LINKS a debt to an asset. If you don't pay, the lender can take the asset.

Etymology

From Old French 'lien' meaning 'bond, tie' — a legal tie to an asset.

Common Misspellings

leinleignleinelieen

Related Terms

collateralmortgagedebtforeclosure

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