equitable lien
Quick Summary
An equitable lien is a claim or charge upon property that secures the payment of a debt or the satisfaction of an obligation. Unlike possessory liens, where the creditor holds the property, courts of equity may recognize a creditor's interest in a debtor's property even if it remains in the debtor's possession.1
An example of an equitable lien is an "equitable levy," which involves a creditor placing a lien on a judgment debtor's assets through legal process. These liens are distinct from common-law possessory liens and statutory liens, such as the mechanic's lien used in the United States. Equitable liens are a recognized property right, with roots in early Roman law.21
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