Liens

Question 1

General

Answer 1

Definition - form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation; leinor has right to retain the debtor’s property until payment is made

Question 2

Parties

Answer 2

Lienor - person entitled to the goods until the debt hasg been paid (creditor)

Lienee - person who must repay to regain control of his goods (debtor)

Question 3

Types of Liens

Answer 3

1. General - lienor may retain possession of debtor’s goods until all debts to lienor are paid
2. Special - goods are already in the possession of the creditor and can be held until payment of the lien is complete

Ex: artisans, warehouse, landlords, innkeepers

Question 4

Discharge of Liens

Answer 4

Three means:

1. Satsifaction of debt
2. Wavier (expressly or implied by behavior)
3. Conditional return without a wavier of the lien

Ex: repairman fixes farmer’s tractor, farmer doesnt pay of repair work and doesnt have money, repairman can “lend” tractor to farmer without waiving the lien for the limited purpose of getting the crop