Non-Possessory Lien

The legal claim against an asset in order to secure payment of the debtor's obligation. In a non-possessory lien the lienor does not hold physical possession of the asset in question, only a legal right. For example, a creditor can place a non-possessory lien against a debtor's piece of real estate in order to recoup his/her loan amount once the property is sold.

For example, pawn shops retain possession of an item that a customer uses as collateral for a short-term loan. The pawn store owner therefore retains a possessory lien; if the customer does not repay the loan according to the terms and conditions s/he agreed to, the store owner can take ownership of the item offered as collateral.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Lien — For other uses, see Lien (disambiguation). Property law …   Wikipedia

  • laborers' lien — Species of non possessory lien which gives preference to laborer who works on job for payment of his wages ahead of general creditors. Such liens are generally governed by state statutes. See mechanic s lien …   Black's law dictionary

  • Maritime lien — Admiralty law History …   Wikipedia

  • Security interest — A security interest is a property interest created by agreement or by operation of law over assets to secure the performance of an obligation, usually the payment of a debt.[1] It gives the beneficiary of the security interest certain… …   Wikipedia

  • Oneida Indian Nation — Total population 1,000+ Regions with significant populations …   Wikipedia

  • property law — Introduction       principles, policies, and rules by which disputes over property are to be resolved and by which property transactions may be structured. What distinguishes property law from other kinds of law is that property law deals with… …   Universalium

  • List of law topics (N-R) — NOTOC Law [From Old English lagu something laid down or fixed ; legal comes from Latin legalis , from lex law , statute ( [http://www.etymonline.com/index.php?search=law searchmode=none Law] , Online Etymology Dictionary; [http://www.m… …   Wikipedia

  • Bill of lading — Admiralty law History …   Wikipedia

  • economic loss — There are legal rules, which restrict recovery of compensation for financial loss which arises without intervening physical damage or personal injury where the only loss is economic. Easyform Glossary of Law Terms. UK law terms. economic loss …   Law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.