The etymological root is Anglo-French lien or loyen, meaning "bond", "restraint", from the Latin ligamen, from ligare "to bind".
In the United States, the term lien generally refers to a wide range of encumbrances and would include other forms of mortgage or charge.
In other common-law countries, the term lien refers to a very specific type of security interest, being a passive right to retain (but not sell) property until the debt or other obligation is discharged.
In contrast to the usage of the term in the US, in other countries it refers to a purely possessory form of security interest; indeed, when possession of the property is lost, the lien is released.
[5] However, common-law countries also recognize a slightly anomalous form of security interest called an "equitable lien", which arises in certain rare instances.
Perfection is generally accomplished by taking steps required by law to notify third-party creditors of the lien.
Where the property remains in the hands of the debtor, a further step must be taken, like recording a notice of the security interest with the appropriate office.
An equitable lien is a legal remedy rather than a security interest created to contemplate or support a transaction.
Disputes between legitimate lienholding of chattels versus hostage-loading can sometimes be averted by the customer, including an advanced (before-the-fact) consensual waiver of the mover's right to a lien in the written contract, obligating the moving company to deliver the goods with reasonable dispatch regardless of payment disputes.
[7][8][9] Outside the US, a common-law lien may be defined as a passive right to retain a chattel (and, sometimes, documentary intangibles and papers) conferred by law.
Modern law has generally left the legal lien to cases where it has been historically established without any real effort to make it applicable to current conditions.
A special lien can only be exercised regarding fees relating to the instant transaction; the lienor cannot use the property held as security for past debts.
[21] A maritime lien constitutes a security interest upon ships of a nature otherwise unknown to the common law or equity.
It is a claim upon the property, both secret and invisible, often given priority by statute over other forms of registered security interest.