Springing lien: Difference between revisions
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Amwelladmin (talk | contribs) (Created page with "{{def|Springing lien|/ˈsprɪnʤɪŋ/ /lɪən/|n|}} A security interest that takes everyone by surprise. A lien on a debtor’s property that kicks in should a pre-de...") |
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Revision as of 17:00, 9 February 2021
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Springing lien /ˈsprɪnʤɪŋ/ /lɪən/ (n.)
A security interest that takes everyone by surprise. A lien on a debtor’s property that kicks in should a pre-defined event happen. For example, a loan may include a springing lien that requires the borrower to pledge its assets to secure the loan if the borrower's credit rating is downgraded. Compare with a floating charge.