EASY SHORT NOTES ON LIEN | PASS LAW JAIIB 2024
In this article we are going to discuss the JAIIB Nov exam 2024 and a very important topic of JAIIB exam i.e. Lien along with giving you an idea about the JAIIB Nov study material that we provide to you easy and short notes and revision notes for JAIIB BRBL.
JAIIB exam in May 2024 is one of the most difficult exams taken by IIBF biannually. JAIIB exam May 2024 is near and we have an excellent JAIIB study material nov 2022 to help you out with your preparation which we will discuss later in this article but before that we want to give you an idea about one of the most important topics of JAIIB exam 2024 which is Lien.
A lien is a right to claim property often used as collateral to pay off debts. A lien could be established by a creditor or by a court order. A lien is used to assure the performance of an underlying obligation, like the payback of debt. The creditor may be able to seize the assets covered by the lien if the underlying duty is not paid in full. Liens are used to secure assets and come in wide different varieties.
WORKING OF LIEN | LRAB SYLLABUS 2024
When a borrower defaults on a loan or contract, a lien gives the creditor the legal right to take and sell the collateral asset or property. Without the holder’s permission, the owner cannot sell a piece of property that is subject to a lien. An inventory lien or other unfixed property lien is a floating lien.
Liens, such as a lien on a piece of property for a loan, can be voluntarily taken or agreed upon. However, there are statutory or involuntary liens where a creditor files a lawsuit to recover unpaid debt. A lien is consequently put on assets, such as real estate and bank accounts.
To inform the public that the lienholder has an interest in the asset or property, some liens are filed with the government. Anyone interested in buying the asset or collateral is informed by the public record of the lien that the lien must be satisfied before the asset may be sold.
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DIFFERENT TYPES OF LIENS
Liens and lien holders come in a variety of forms. Financial organisations, governments, and small enterprises can all impose liens. Some of the most typical liens are listed here.
LOAN LIEN
When a person obtains a loan from a bank to buy an asset, a lien is frequently given. For instance, if a person purchases a car, the bank loaned money would be used to pay the seller. The bank would then be awarded a lien on the vehicle. If the borrower defaults on the loan, the bank may enforce the lien, confiscate the car, and sell it to recoup the debt.
JUDGEMENT LIEN
A judgement lien is a legal claim on property typically made due to litigation. By selling the accused’s assets, a judgement lien could assist a defendant in recovering money in a nonpayment case.
ENGINEER’S LIEN
If the owner of real estate doesn’t reimburse a contractor for services provided, an engineer’s lien may be placed against the property. If the debtor refuses to pay, the contractor may file a lawsuit and win a judgement against the non-paying party, allowing for the sale of property or other assets at auction to satisfy the lien holder. Construction firms and dry cleaners are only two examples of service providers who can file a lien to guarantee payment.
FISCAL LIENS
There are also several statutory liens, which are liens established by statute rather than by contract. In the area of taxation, where laws frequently permit tax officials to place liens on the property of unpaid taxpayers, these liens are reasonably widespread. Municipalities can employ liens, for instance, to recoup due property taxes.
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THE IMPORTANCE OF A LIEN
A lien is the legal right to keep possession of another person’s property until that person satisfies the demands of the person who has kept the possession of that property. The contract of lien was based on the idea that it wasn’t between the parties and that each had legal rights as a result of the law being imposed by common law courts. Therefore, the significance of lien is as follows:
- Safeguards the buyer: When there is nonpayment of the debt, the existence of a lien safeguards the interests of the lenders. Because it is implicit, loans with collateral present less risk to the lender and may result in reduced interest rates for the borrowers.
- It enables the seller or an agency to get their money back: A lien is the legal right to keep possession of another person’s property until that person satisfies the demands of the person who has kept the possession of that property. Any requirement could be made, including fulfilling a task or making a required payment. If the principal or buyer refuses to pay the agreed-upon sum to the agent or sailor, the agent may recover the money due by selling the security; this right resulted from the lien.
- Liens are crucial when purchasing a firm: It is advised that when a person purchases a certain company, he should confirm that the assets of the company are free of liens that can impede the company’s ability to expand and succeed.
- When it comes to recouping the essential and additional orbit expenses that the seller or the agent reserves to have, the lien’s significance becomes apparent.
JAIIB NOV STUDY MATERIAL 2024
In our JAIIB Nov study material 2024 we offer services like:
- Recorded video lectures which can be downloaded and be accessed according to your convenience.
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- Short and easy notes are available so that you can revise the topics in a very short time.
- Revision notes for JAIIB NOV LRAB are also available.
- These notes are available on our apps for which the links are given at the end of the article.
- Mock tests are also available for you to solve.
- Case studies are also covered in our mock tests.https://youtu.be/PevXLfzJi-Y
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