Defined ~ Lien And Valid Lien

Lien Valid_Lien Definition Mainuvta0117definitionvalidlien

"LIEN" AND "VALID LIEN" DEFINITIONS


#definedlien


"LIEN" DEFINED

§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.
JayNote
The term "lien" is broadly define to include both security interests and judgment liens.

#definedvalidlien


"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).
JayNote
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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"LIEN" OPINIONS


"VALID LIEN" OPINIONS


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