A lien is a charge imposed in some mode other than by a transfer in trust upon specific property by which it is made security for the performance of an act.
Liens in GeneralDefinition of Liens
Section § 2872
This law explains that a lien is a type of financial charge placed on property, not involving a trust transfer, to make sure that an obligation or act gets fulfilled.
lien charge property as security
Section § 2873
This section defines that liens can be categorized as either general or special.
Liens are either general or special.
general lien special lien types of liens
Section § 2874
This law explains that a general lien allows a person to use someone's property as security to ensure all the debts or obligations owed to them by the property's owner are fulfilled.
A general lien is one which the holder thereof is entitled to enforce as a security for the performance of all the obligations, or all of a particular class of obligations, which exist in his favor against the owner of the property.
general lien security for performance obligations
Section § 2875
This law explains that a special lien is a claim someone can use to ensure a specific act or obligation is performed. It only applies to that specific obligation and related duties.
A special lien is one which the holder thereof can enforce only as security for the performance of a particular act or obligation, and of such obligations as may be incidental thereto.
special lien security performance
Section § 2876
If someone with a special lien has to pay off an earlier lien to protect their interest, they can then recover that payment as part of their own claim.
Where the holder of a special lien is compelled to satisfy a prior lien for his own protection, he may enforce payment of the amount so paid by him, as a part of the claim for which his own lien exists.
special lien prior lien lienholder
Section § 2877
This law states that any agreements involving a mortgage, pledge, or types of loans secured by a ship (bottomry) or cargo (respondentia) must comply with the rules outlined in this chapter.
Contracts of mortgage, pledge, bottomry, or respondentia are subject to all of the provisions of this chapter.
mortgage contracts pledge agreements bottomry loans
