Defined ~ Lien And Valid Lien
Lien Valid_Lien Definition Mainuvta0117definitionvalidlien
"LIEN" AND "VALID LIEN" DEFINITIONS
§1(9) “Lien” means a charge against or an interest in property to secure payment of a debt or performance of an obligation, and includes a security interest created by agreement, a judicial lien obtained by legal or equitable process or proceedings, a common-law lien, or a statutory lien.
Reporter's Comment to § 1(9).
The definition of “lien” is derived from paragraphs (30), (31), (43), and (45) of Bankruptcy Code § 101 (1984), which define “judicial lien,” “lien,” “security interest,” and “statutory lien” respectively.
The term "lien" is broadly define to include both security interests and judgment liens.
"VALID LIEN" DEFINED
§1(17) “Valid lien” means a lien that is effective against the holder of a judicial lien subsequently obtained by legal or equitable process or proceedings.
Reporter's Comment to § 1(17).
The definition of “valid lien” had no analogue in the Uniform Fraudulent Conveyance Act. A valid lien includes an equitable lien that may not be defeated by a judicial lien creditor. See, e.g., Pearlman v. Reliance Insurance Co., 371 U.S. 132, 136 (1962) (upholding a surety’s equitable lien in respect to a fund owing a bankrupt contractor).
A "valid lien" is one that will stand up to another creditor which itself later obtains a judgment lien on the transferred asset.
"VALID LIEN" ARTICLES
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