Preferential Lien
/ˌprɛfəˈrɛnʃəl liːən/
Definitions
- (n.) A lien granted to a creditor that gives it priority over other creditors to satisfy a debt from the debtor's property.
The bank asserted a preferential lien on the debtor's assets before any unsecured creditors could claim repayment.
Forms
- preferential lien
- preferential liens
Related terms
See also
Commentary
Preferential liens are subject to strict statutory conditions and often scrutinized in insolvency contexts to prevent unfair advantage over other creditors.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.