The lender on a loan with collateral. When one has placed collateral on a loan, the lienholder has the right to take possession of the collateral in the event of default. One cannot sell the collateral until the loan is repaid.
A lienholder is the bank, finance company, credit union, other financial institution, or individual with whom you signed an agreement to borrow money using a particular asset, such as a car, as collateral.
As long as there is a balance due on the loan, the lienholder must be repaid before you are free to sell the asset.
The Seventh Circuit has signaled a principled preference for the face value approach as well, albeit in a different context and only in dicta: "As a general rule, the bankruptcy court should not order property sold 'free and clear of' liens unless the court is satisfied that the sale proceeds will fully compensate secured lienholders and produce some equity for the benefit of the bankrupt's estate.
The lienholders bill the property owner directly for past due amounts, and can add a 5 percent surcharge and other charges to the total due.
However, the primary lienholder in this case was not as fortunate.
California Court of Appeals, 1932), holding that no merger had taken place as a matter of equity once a senior lienholder accepted title; and Hines u.
To protect your interest in the car, make certain you're listed as the lienholder on the car's title and auto insurance policy.
122) The plan would (1) provide monthly incentive fees to servicers who complete successful modifications, (2) payments to second lienholders equal to five percent of the outstanding second lien balance, and (3) a litigation safe harbor that "eliminates explicit limits on modifications" and compensates investors.
Farmers Home Administration, which is a lienholder on the old hospital building, Compton said.
They defaulted on the loan, but the primary lienholder initially declined to foreclose on the property because it was unwilling to assume the risks of ownership.
The court held that Conmac could not recover against the surety as a "debtor must first establish its rights as a lienholder and to the foreclosure of such lien before it is entitled to enforce a statutory bond discharging the lien.
In this circumstance, managers might beef up earnings to maintain a particular ratio of assets to liabilities required by a lienholder.
This coverage is written similar to traditional title insurance and protects the purchaser and/or lienholder for an amount equal to the amount financed for any environmental liabilities incurred on the property that arise from historic contamination that was undiscovered during an initial environmental site assessment.