What does banker's lien mean?

banker's lien meaning in Law Dictionary

charge that lets a bank have actually claim on assets when you look at the banks possession. It will take and sell this home if default should happen. They give notice of the but do not must foreclose. The way in which it really is enforced hinges on the sort of home.

banker's lien meaning in Business Dictionary

variety of charge that provides a bank automatic claim over a borrower's home or assets which come in lender's ownership in the typical length of its company. Bankers' lien is both a possessory lien and special lien: the bank gets the straight to seize and sell the defaulting borrower's residential property in its possession, after giving a reasonable notice but without checking out the property foreclosure process. Administration of a banker's lien, but may rely on the kind of the property and the explanation it was paid to (or came in possession of) the bank. Bills of change, credit cash-balances, negotiable securities (such as cleared checks and drafts), and promissory records, may be reported under this lien. However it is perhaps not appropriate where in actuality the debtor's property was handed over to your lender for a specific purpose, such for safe custody (like in the financial institution's safe deposit cardboard boxes) or even for sale through a department of this lender.