Lien

Liens can be voluntary (a UCC-1 granted to a lender) or involuntary (tax lien, judgment lien, mechanic’s lien). A lien on an asset means the creditor can force its sale to satisfy the debt if the borrower defaults.

Multiple liens on the same asset are ranked by priority, usually first-in-time, first-in-right. Tax liens often super-prime other liens regardless of filing date. Always order a lien search on any business before an acquisition, refinance, or large new loan.