First lien

A lien is a legal right to hold the property of another party or to have it sold or applied in payment of a claim.

A first lien places the lien holder first in line to collect payment from the sale of the collateral in the event of a default on the debt.

See also

• Collateral
• Encumbrance
• Fixed charge
• Lien
• Mortgage
• Pledge
• Remedy
• Second lien
• Garnishee order