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Lien

• A publicly disclosed legal claim on collateral.

• A security interest in one or more assets that is granted to lenders in connection with secured debt financing.

• Is a claim against a property.

 
 Embedded terms in definition
 Assets
Collateral
Debt financing
Debt
Interest
Secured debt
Secured
Security
 
 Referenced Terms
 Blanket inventory lien: A secured loan that gives the lender a Lien against all the borrower's inventories.

 Collateral trust bond: A bond in which the issuer (often a holding company) grants investors a Lien on stocks, notes, bonds, or other financial asset as security. Compare mortgage bond.Is a security issued by a corporation and is secured by other securities. This bond compares to Mortgage Backed Securities which are secured by real property or unsecured bonds. Depending on the underlying collateral and the terms of the issue, these bonds can offer somewhat better financing rates to the issuer.

 Floating lien: General Lien against a company's assets or against a particular class of assets.

 Inventory loan: A secured short-term loan to purchase inventory. The three basic forms are a blanket inventory Lien, a trust receipt, and field warehousing financing.

 Leveraged lease: A lease under which the lessor acts as an equity participant, supplying only about 20 percent of the cost of the asset, while a lender supplies the balance.The lessor provides only a minor portion of the cost of the leased equipment, borrowing the rest from another lender.A lease arrangement under which the lessor borrows a large proportion of the funds needed to purchase the asset and grants the lender a Lien on the assets and a pledge of the lease payments to secure the borrowing.

 
 Related Terms
 Blanket inventory lien
Floating inventory lien
Floating lien
Perfected first lien

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