Lien

Lien is a word that many people don't come across, but it is relatively common as a legal concept and in some parts of the financial world.

It is essentially a claim against property, specifically in order to allow a debt to be repaid and therefore acts as a form of security against that debt. For instance if a mortgage is defaulted on, then the house itself is at risk due to this concept.

Related Articles

Deregulation
Futures exchange
Market research
Accrual Rate
Fixed rate loan

More Financial Words and Vocabulary Explained