lien
noun
, ˈlē-ən
\
Definition of lien
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Examples of lien in a Sentence
Recent Examples on the Web
In May, the Internal Revenue Service placed a tax lien on IBT for not paying more than $400,000 in taxes. — Mike Snider, USA TODAY, "The editor's note on the 'Newsweek' investigation is eye-popping," 21 Feb. 2018 The debts were not cited in Ford's 2016 financial disclosure as the liens were released that year. — Haris Alic, Fox News, "Nevada Democrat struggles to explain incurring $185,000 in unpaid income taxes," 1 Aug. 2018 According to The Washington Post, in 2015, the state of Maryland filed a lien against Swetnick's property, citing more than $30,000 in unpaid taxes dating back to 2008. — Alex Pappas, Fox News, "Republicans stand by Kavanaugh as details on Avenatti's new client emerge," 27 Sep. 2018 To be at risk of passport denial, a taxpayer must typically be subject to a lien, which advises creditors of a debt to the IRS, or a levy, which gives the IRS the authority to seize assets. — Laura Saunders, WSJ, "Thousands of Americans Will Be Denied a Passport Because of Unpaid Taxes," 6 July 2018 The rowhouse was appraised at $7,500, but saddled with tax liens that exceeded its value. — Tim Prudente, baltimoresun.com, "Collapse: The rise and deadly fall of a Baltimore rowhouse," 12 July 2018 Los Angeles County records show that two federal tax liens were placed against Surf Air in May, one for $1.9 million and another for about $434,000. — Hugo Martin, latimes.com, "Surf Air faces lawsuit, tax liens," 23 June 2018 Yergler Construction filed a mechanical lien on March 1 and officially sued 1616 J Street Investors on May 14. — Benjy Egel, sacbee, "Former Burgers & Brew contractor sues for $1.2 million as brewery nears opening," 22 June 2018 The Harford County government put tax liens on 620 properties up for sale at its annual delinquent payment auction Monday, recouping $828,376.97 on 597 accounts, according to county officials. — David Anderson, The Aegis, "Harford County recoups more than $828,000 in annual tax lien sale," 19 June 2018These example sentences are selected automatically from various online news sources to reflect current usage of the word 'lien.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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More Definitions for lien
lien
nounFinancial Definition of lien
What It Is
A lien is a lender's claim against a collateral asset that may be legally sold should the borrower fail to repay a loan.
How It Works
When someone takes out a sizeable loan, such as a home mortgage or an auto loan, the lender often requires an asset that can be held as collateral against the loan. Thus, the collateral has a lien placed upon it. In the event of non-payment on the part of the borrower, the lending institution can exercise the lien and sell the collateral asset to offset the unpaid loan. Once the loan is repaid in full, the collateral asset is returned to the borrower and the lien dissolved.
To illustrate, suppose someone takes out a $10,000 loan for a new car. As part of the loan's terms, the bank gets to hold the title to the car as a lien against the car until the loan is fully repaid. Should the borrower, at any point, default or refuse to repay the balance of the loan, the bank can use the title to the car to sell it in order to recover the money that was lent.
Why It Matters
A lien protects lenders in the event of non-payment. Since loans with collateral are less risky for the lender, they can lead to lower interest rates for the borrower.
When purchasing a used car, for example, it's important to check for liens against the vehicle. If there is an outstanding debt on the car, the buyer runs the risk of having it repossessed by the lender.
Source: Investing Answers
judgment lien
nounFinancial Definition of judgment lien
What It Is
A judgment lien allows a creditor to take possession of a piece of a debtor's property if the debtor does not pay his or her debts.
How It Works
Let's say John Doe owns a pit bull breeding company that borrows $1 million from Bank XYZ. Sales aren't going so well, and John falls behind in the payments to Bank XYZ. Bank XYZ obtains a judgment lien, which allows it to seize his house, car and any other assets necessary to get the $987,465 outstanding balance repaid in full if John does not start making regular payments again. If John does not comply, Bank XYZ simply repossesses and sells the assets.
Judgment liens are also common in cases where a person's insurance doesn't cover the full amount of a judgment resulting from damages in a car accident or other situation.
There are different kinds of judgments. A default judgment, for example, occurs in favor of the plaintiff when the defendant fails to appear in court to defend himself or does not respond to a summons. A deficiency judgment occurs when the sale of a seized piece of property does not generate enough cash to pay the judgment and the court has to place a lien on more property.
Why It Matters
The laws on judgment liens vary by state and by jurisdiction. However, the intent of most judgment liens is to compel the borrower to repay the creditor.
Source: Investing Answers
tax lien
nounFinancial Definition of tax lien
What It Is
A tax lien is a claim placed on a piece of real estate by a tax authority due to a taxpayer's failure to pay taxes.
How It Works
When a taxpayer fails to pay either income taxes or property taxes, the taxing authority to whom the debt is owed may place a lien against the taxpayers property to ensure that the tax liability will eventually get paid. A property with a tax lien cannot be sold by the owner, which prevents the owner from walking away from the tax liability.
Why It Matters
Tax liens are highly effective for tax enforcement since the property holder can not sell a property that has a lien on it. The taxing authority will keep a lien on the property until the tax liability is paid.
Tax liens can be purchased by investors as an investment. Such investments are considered solid since they are tied to a hard asset.
Source: Investing Answers
lien
noun
English Language Learners Definition of lien
See the full definition for lien in the English Language Learners Dictionary
lien
noun
\
Medical Definition of lien
Other Words from lien
\
adjective
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lien
noun
\
Legal Definition of lien
— called also special lien
Note: A factor's lien is simply a security interest and, unlike a common-law lien, is enforceable even after the factor is no longer in possession of the property.
— called also general lien
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