Maa Nathltaapaan TYPES OF LIENS - Jamie Weare Notsheep Barker • Common Law Liens are non-commercial "Lis Pendens" Liens that must be upheld by judicial action in a court before claims to assets can be executed. Common law liens are usually used more in a defensive way to shield and protect assets, rather than an offensive way to lay claim to assets. (See further discussion under Comparisons). • Equity Liens arise from an equity court or administrative court. • Statutory Liens are established by the statutory laws of the state. • Mortgage Liens are created by contract between borrowers and lenders, with the asset of the borrower pledged as collateral to the lender. • Mechanics Liens are typically used by repair service providers as a claim on an item repaired, to ensure payment for repair services rendered. The name originated from when an auto mechanic repairs a car and the owner fails to pay for the repair. Then the mechanic can file a lien on the car. • Commercial Liens, also known as contract liens, are true bills in commerce publicly declared. A true bill in commerce always contains, and is characterized by, a one-to-one correspondence between an item or service purchased and a debt owed. This commercial relationship is what is known as "just compensation" (5th Amendment, U.S. Constitution). A normal true bill in commerce is private, whereas a commercial lien is publicly declared, using means such as media advertising and/or filing at the County Recorder. When it is uncontested by a categorical point-by-point rebuttal of the affidavits, it is considered an account receivable security (15 U.S.C.). In general, commercial liens (e.g., mechanics and workmens liens) take seniority over common-law liens, which, in turn, take precedence over mortgage liens. Tax liens are classified as commercial liens, which is why they are so troublesome.
Posted on: Sun, 01 Sep 2013 22:59:52 +0000
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