Possessory Lien - Explained
What is a Possessory Lien?
Written by Jason Gordon
Updated at September 26th, 2021
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What is a Possessory Lien?
A possessory lien gives a creditor the authority to possess the property that is subject to the lien until the borrower has paid the subject debt or loan. A lien refers to a legal claim that a person has over somebody else's property. The lien allows the subject property so serve as security for the payment a debt. A lien does not offer ownership over the security, instead it is a kind of encumbrance.
Back To: COMMERCIAL LAW: CONTRACTS, PAYMENTS, SECURITY INTERESTS, & BANKRUPTCY
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