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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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{{def|Springing lien|/ˈsprɪnʤɪŋ/ /lɪən/|n|}} | {{def|Springing lien|/ˈsprɪnʤɪŋ/ /lɪən/|n| | ||
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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 [[Ratings notches|credit rating]] is downgraded. Compare with a floating charge. | 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 [[Ratings notches|credit rating]] is downgraded. Compare with a floating charge. | ||