Unperfected Lien

Filed Under:
Dictionary Says

Definition of 'Unperfected Lien'


A lien for which the holder has not provided a valid claim. Unperfected liens leave lenders open to the possibility that other creditors can challenge for the collateral being used in the loan. These liens are usually honored in court when the dispute is only between the borrower and the lender, but often fail to weather challenges mounted by third parties.

Investopedia Says

Investopedia explains 'Unperfected Lien'


Liens can remain unperfected for many reasons. Lenders that neglect to record their statement of financing for a piece of property that attaches the lien have failed to perfect their lien. Failure of a lender to discover a previously filed lien also renders their lien unperfected.



comments powered by Disqus
Hot Definitions
  1. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  2. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  3. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  4. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  5. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
  6. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
Trading Center