Perfected Lien

A security interest in the collateral that is used to secure the performance of a debt that is protected from third-party claims. A perfected lien for real property must be filed with the correct legal authority. Perfected liens for real estate are achieved when the mortgage deed of trust is recorded in the land records of the appropriate municipality.

Perfected liens on personal property are created when the lender files a Form UCC-1 financing statement with the correct authority (usually the office of the secretary of the state or the office of the county recorder). This statement will outline the type and location of the collateral used to secure the loan. The filing statement gives the lender precedence in the collection process if the borrower defaults.


Investment dictionary. . 2012.

Look at other dictionaries:

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

  • perfected — per·fect·ed /pər fek təd/ adj: completed in accordance with statutory procedure for giving notice and thereby having a status of priority over security interests that are the subject of such procedure at a later date or that are not the subject… …   Law dictionary

  • lien — /liy(a)n/ A claim, encumbrance, or charge on property for payment of some debt, obligation or duty. Sullins v. Sullins, 65 Wash.2d 283, 396 P.2d 886, 888. Qualified right of property which a creditor has in or over specific property of his debtor …   Black's law dictionary

  • Perfected first lien — A first lien that is duly recorded with the cognizant governmental body so that the lender will be able to act on it should the borrower default. The New York Times Financial Glossary …   Financial and business terms

  • perfected first lien — A first attachment on an asset that is duly recorded with the relevant government body so that the lender will be able to act on it should the borrower default. Bloomberg Financial Dictionary …   Financial and business terms

  • Tax lien — A tax lien is a lien imposed on property by law to secure payment of taxes. Tax liens may be imposed for delinquent taxes owed on real property or personal property, or as a result of failure to pay income taxes or other taxes.Tax liens in… …   Wikipedia

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  • choate lien — /kowat liyn/ Lien which is perfected so that nothing more need be done to make it enforcible. Identity of lienor, property subject to lien and amount of lien are all established. Walker v. Paramount Engineering Co., C.A.Mich., 353 F.2d 445, 449;… …   Black's law dictionary

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