lien

USAGE SUMMARY

The phrase "lien" is correct and usable in written English.
It is typically used in legal and financial contexts to refer to a legal right or interest that a lender has in the borrower's property, granted until the debt obligation is satisfied. Example: "The bank placed a lien on the property until the mortgage was fully paid off."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

30 human-written examples

They included three tranches of term loans, some mezzanine-like debt called "second lien", and ten-year junk bonds, denominated both in euros and in dollars.

The Economist

Unfortunately, Germany did not understand that Britain did not have a lien on the whole world, and that (British interests apart) the views of other powers had to be taken into account, so that the desired territorial concessions could not be slipped into Germany's pocket without demur.

The Economist

Recently the Czech Republic amended the law to permit a lien on movable collateral such as machinery and other capital goods.

The Economist

One of the best places to check for new polls is a French website that usually puts up the latest surveys fairly quickly, and links to the raw data too (click on the word lien).

The Economist

Mike Flowers, the chief analytics officer in New York, says that if a property has a tax lien on it there is a ninefold increase in the chance of a catastrophic fire there.

The Economist

If the state were to take a lien on the home of every retired middle-class couple who had paid off their mortgage after years of thrift, there would be a revolution.Perhaps a better idea would be to bring the price Americans pay for gasoline nearer the OECD norm.

The Economist

Human-verified similar examples from authoritative sources

Similar Expressions

30 human-written examples

Talks among creditors of American Remanufacturers, a third car-parts firm, broke down when second-lien lenders claimed that first-lien lenders could not finance the company through bankruptcy without their permission.

The Economist

Mr Geanakoplos reckons this would address the incentive problems and legal issues faced by servicers, which often have fiduciary duties to holders of mortgage securities.A measure called lien-stripping, or, more commonly, "cramdown", offers another way around the securitisation bottleneck.

The Economist

Even so, the plan appears to treat second-lien holders better than investors in the main mortgage, because the former are not required to cut principal when first-lien balances drop.

The Economist

Since the price for such permission would almost certainly have been equal treatment of both classes, the first-lien lot walked away, leaving the company with no money.

The Economist

Some of Meridian's biggest creditors were hedge funds which held a lot of first- and second-lien debt and in effect had a blocking vote in both classes.

The Economist

Expert writing Tips

Best practice

When discussing financial or legal matters, use "lien" precisely to denote a legal claim on property as security for a debt or obligation.

Common error

Avoid using "lien" as a general term for any type of debt. A "lien" specifically refers to a secured claim where the creditor has rights to the debtor's property.

Linguistic Context

The noun "lien" functions as a legal term identifying a charge, security, or encumbrance on property to satisfy a debt or duty. Ludwig confirms that the usage is correct and applicable in contexts involving law and finance.

Expression frequency: Uncommon

Frequent in

News & Media

60%

Formal & Business

30%

Science

10%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

The term "lien" refers to a legal claim or charge upon real or personal property to ensure payment of a debt or performance of a duty. Ludwig AI confirms that the use of "lien" is grammatically correct and primarily found in legal and financial contexts. As the examples from The Economist show, "lien" often appears in discussions of debt, mortgages, and financial restructuring. While not extremely common, understanding the precise meaning of "lien" is important when dealing with property rights and financial obligations.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

legal claim

This alternative is a broader term that encompasses the concept of a "lien" as a specific type of legal entitlement.

security interest

This alternative is a more specific term often used in commercial law to describe a creditor's right to collateral.

encumbrance

This alternative refers to a claim or liability that is attached to property or some other right and that may lessen its value, much like a "lien".

claim against property

This alternative directly states the nature of a "lien" as a formal demand or assertion of rights concerning real or personal property.

charge on property

This alternative describes the imposition of a "lien" as a burden or obligation attached to the ownership of property.

mortgage

This alternative is a specific type of "lien" on real estate used to secure a debt, often a home loan.

attachment

This alternative refers to a legal process where a court orders the seizure of property to satisfy a debt.

judgment

This alternative represents a court's decision that establishes a debt, which can then become a "lien" on property.

deed of trust

This alternative is a document used in some states in place of a mortgage, creating a "lien" against property.

collateral

This alternative refers to the asset pledged to secure a loan, on which a "lien" can be placed.

FAQs

How is a "lien" created on a property?

A "lien" can be created through various means, such as a mortgage agreement, a court judgment, or by operation of law for unpaid taxes or services.

What happens if a homeowner doesn't pay a debt secured by a "lien"?

If a homeowner defaults on a debt secured by a "lien", the creditor can initiate foreclosure proceedings to sell the property and recover the debt.

What's the difference between a mortgage and a "mechanic's lien"?

A mortgage is a voluntary "lien" created by a homeowner to borrow money, while a "mechanic's lien" is an involuntary "lien" placed on a property by a contractor or supplier for unpaid work or materials.

How does a "tax lien" affect the sale of a property?

A "tax lien" must be satisfied before the property can be sold. The seller must pay the outstanding taxes, penalties, and interest from the sale proceeds.