Explain Lien and Its Types

Lien
In law, a lien (UK /lin/ or US /lin/) is a form of security interest granted over an item ofproperty to secure the payment of a debt or performance of some other obligation. The owner of the property, who grants the lien, is referred to as the lienor and the person who has the benefit of the lien is referred to as the lienee. There are a number of different types of liens such as general and specific. The less well-known types of liens are an equitable lien, the Maritime right of this nature in the statutory form of this right. Perhaps the least well-known is the preferable form of the right to keep the debtor's property. an equitable right of this nature arises in situations where equity recognises that a creditor has a right to property of the debtor applied to payment of the debt. Because it is a right of this nature, it only arises by implication of the law, not by express agreement of the parties. Unlike possessory or common-law right, an equitable lien does not depend on possession. examples of this type of right to include a beneficiary of the trust having equitable rights over property bought by the trustee in breach of trust, or bought by another beneficiary who has profited from the trustees breach of trust. Another example includes in the case of the dissolution of a partnership, a partner has an equitable right over the partnership assets to make sure that the assets are used to pay the partnership debts. A purchaser of a house or band who is paid a deposit as an equitable the end of the property to the extent of the purchase money paid. If a solicitor to suit a client, and has a court order for his or her legal costs and has no chance of getting payment, the solicitor has an equitable right or an equitable charge over any of the clients funds which is solicitor hold in reserve for costs. In relation to a Maritime lien, this is a right which attaches to a ship and its cargo in connection with the liability, such as the lien of seamen for their wages, or the right of a master of a ship for salary and disbursements. This right also applies in favour of claimants regarding damaging collision between ships. Possession is not necessary and this type of maritime right attaches regardless of any change of ownership because the lien may be exercised by stopping the ship. Statutes may create liens codify existing common-law right, and additional powers making statutory a right which may have arisen under contract. Examples of this include the power of sale for reward in favour of the bailee, the civil aviation authority statutory power over aircraft for amounts owing for service and facilities provided to airline operators, and innkeepers right to sell the property of an absconding guest, the right of councils to sell property on the land of the ratepayer who has not paid their rates, and taxes, or other fees owing to the state. Other examples include rural production which is being financed on the security of crops, wool and stock. Once it has been established that this type of rights over property exists in relation to a debtor, there are a number of different considerations in relation to the enforcement of this right. a possessory right is not give the power of sale unless there is an express agreement or statutory authority. There may be expenses involved with enforcement is right. For example, if a car repair has exercised their rights, it has to look after the car but it cannot charge for it. An equitable lien is enforced by order of a court. A maritime right of this nature is

executed against the ship itself. a statutory right of this nature usually creates a power of sale, because a person holding a right has no power of sale common law. It is certainly wise to understand these types rights as you may be a beneficiary of the right to hold a person's property if they owe you money.

General lien - a possessory lien by which the lien holder may retain any of the debtor's goods in the lien
holder's possession until any debt due from the debtor, whether in connection with the retained goods or otherwise, has been paid. Factors, insurance brokers, packers, stockbrokers and banker's liens are all usually general liens.

Bankers Lien
Type of charge that gives a bank automatic claim over a borrower's property or assets that come in banks possession in the normal course of its business. Bankers' lien is both a possessory lien and special lien: the bank has the right to seize and sell the defaulting borrower's property in its possession, after giving a reasonable notice but without going through the foreclosure procedure. Enforcement of a banker's lien, however, may depend on the type of the property and the reason it was handed over to (or came in possession of) the bank. Bills of exchange, credit cash-balances, negotiable securities (such as cleared checks and drafts), and promissory notes, may be claimed under this lien. But it is not applicable where the borrower's property was handed over to the bank for a specific purpose, such as for safe custody (as in the bank's safe deposit boxes) or for sale through a department of the bank.