Tuesday, February 08, 2005

InvestorWords.com Term of the Day: lien

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InvestorWords.com | http://www.investorwords.com
Term of the Day: lien
Tuesday, February 08, 2005
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t e r m o f t h e d a y
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lien:

A legal claim against an asset which is used to secure a loan and which
must be paid when the property is sold. Liens can be structured in many
different ways. In some cases, the creditor will have legal claim
against an asset, but not actually hold it in possession, while in other
cases the creditor will actually hold on to the asset until the debt is
paid off. The former is a more common arrangement when the asset is
productive, since the creditor would prefer that the asset be used to
produce a stream of income to pay off debt rather than just held in
possession and not used. A claim can hold against an asset until all the
obligations to the creditor are cleared (a general lien), or just until
the obligations against that particular assets are cleared (a particular
lien).
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r e l a t e d t e r m s
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Click below for definitions of terms related to lien:

blanket lien: http://www.investorwords.com/cgi-bin/getword.cgi?491
chattel mortgage: http://www.investorwords.com/cgi-bin/getword.cgi?842
clear title: http://www.investorwords.com/cgi-bin/getword.cgi?882
deed of release: http://www.investorwords.com/cgi-bin/getword.cgi?1342
discharge of lien: http://www.investorwords.com/cgi-bin/getword.cgi?1466
Federal tax lien: http://www.investorwords.com/cgi-bin/getword.cgi?1918
floating lien: http://www.investorwords.com/cgi-bin/getword.cgi?2017
title search: http://www.investorwords.com/cgi-bin/getword.cgi?4996

Or click below for additional terms related to ( ):
http://www.investorwords.com/cgi-bin/bysubject.cgi?

For educational articles related to ( ), click here:
http://www.investorguide.com/igu.html
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q u o t e o f t h e d a y
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