Also known as: lienholder · lien-holder · lien holders · lienholders
Written by attorneys · grounded in primary & secondary sources — see below
A person or entity possessing a lien on property that confers rights to payment from the property or its proceeds upon default by the owner. The lien holder may participate in foreclosure as a necessary party, redeem collateral, or claim surplus after senior obligations are satisfied.
Lillian Locke holds a recorded junior lien on real property. The senior mortgagee commences judicial foreclosure and joins Locke as a necessary party. The court requires notice to Locke so that her interest may be addressed at the sale.
Lakeshore Industries holds a perfected lien on equipment. After default the secured party schedules a disposition. Lakeshore tenders full payment of the secured obligation and redeems the collateral before the sale occurs.
Luna Lang as junior mortgagee obtains appointment of a receiver. The receiver collects rents, pays taxes and maintenance costs, and applies the excess to the junior obligation before any senior receiver is appointed.
Select any source to read its text and confirm it supports the definition.
Levi Lowe holds a junior lien on real property. At foreclosure the sale price exceeds the senior debt and costs. The surplus is paid first to Lowe in order of priority before any remainder reaches the mortgagor.
Linden Bank holds a lien on inventory and files a financing statement. The senior secured party disposes of the collateral without knowledge of the lien. The senior secured party incurs no liability to Linden Bank for any noncompliance with Article 9.
Lance Lee holds a junior lien on real property. After foreclosure sale the statutory redemption period remains open. Lee pays the sale price plus interest and costs within the statutory window and redeems the property.
Necessary parties include the mortgagor and may include junior lienholders. State statutes define who must be joined, and failure to join may affect the validity of the sale or the extinguishment of junior interests.
Yes. A debtor, any secondary obligor, or any other secured party or lienholder may redeem collateral by tendering fulfillment of all obligations secured by the collateral.
If the sale price exceeds the debt and costs, the surplus is distributed to junior lienholders in order of priority and then to the mortgagor. State law governs deficiency and surplus rules.
A junior mortgagee who obtains a receiver is entitled to the rents collected before a senior receiver is appointed, after first applying them to taxes and reasonable maintenance expenses.
Statutory redemption allows the mortgagor and sometimes junior lienholders to redeem after sale by paying the sale price plus interest and costs within the statutory period, where such redemption exists.
…“taking” and is not a mere “consequential incidence” of a valid regulatory measure. Before the liens were destroyed, the lienholders admittedly had compensable property. Immediately afterwards, they had none. This was not because their property vanished into thin air. It was because the Government for its own advantage…