Unperfected Lien - Explained
What is an Unperfected Lien?
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What is an Unperfected Lien?
An unperfected lien is a lien that was not filed legally or correctly by a lender. This is important, as a perfected lien is accorded priority over an unperfected lien.
There are many factors responsible for unperfected liens, these include:
- Incorrect information in the lien filed
- Not filing the lien with a correct legal authority.
- Negligence in recording finance statement for the property.
- Failure to detect that there is an existing lien on the property for which the lien of filed.
A creditor that has a perfected lien is given priority over one who has an unperfected lien.
Back To: COMMERCIAL LAW: CONTRACTS, PAYMENTS, SECURITY INTERESTS, & BANKRUPTCY
Related Topics
- What is Priority of a security interest?
- What role does perfection play in establishing the Priority of a secured party?
- What are the common conflicts arising as to priority of a security interest?
- What is the priority of parties secured by common law and statutory liens?
- Lien - Definition
- Blanket Lien Definition
- Unperfected Lien
- Possessory Lien
- Non-Possessory Lien
- Tax Lien
- Mechanics Lien Definition
- Construction Lien
- Cloud on Title
- Priority of a buyer of collateral that is subject to a security interest
Academic research for Unperfected Lien
- From Spokane County to Vermont: The Campaign of the Federal Government Against the Inchoate Lien, Kennedy, F. R. (1964). From Spokane County to Vermont: The Campaign of the Federal Government Against the Inchoate Lien. Iowa L. Rev., 50, 724.
- A theory of contractual debt subordination and lien priority, Carlson, D. G. (1985). A theory of contractual debt subordination and lien priority. Vand. L. Rev., 38, 975.
- The Effect of the Federal Tax Lien Act of 1966 Upon Security Interests Created Under the Uniform Commercial Code, Coogan, P. F. (1967). The Effect of the Federal Tax Lien Act of 1966 Upon Security Interests Created Under the Uniform Commercial Code. Harv. L. Rev., 81, 1369.
- The Choate Lien Doctrine, Burroughs, J. D. (1963). The Choate Lien Doctrine. Duke LJ, 449.
- Knowledge as a Factor in Determinig Priorities under the Uniform Commercial Code, Felsenfeld, C. (1967). Knowledge as a Factor in Determinig Priorities under the Uniform Commercial Code. NYUL Rev., 42, 246.
- Capital in Hell: Dante's Lesson on Usury, Koffler, J. S. (1979). Capital in Hell: Dante's Lesson on Usury. Rutgers L. Rev., 32, 608. [PDF]
- From the Bankruptcy Courts: Bankruptcy Trustee's Strong-Arm Powers Balked by a Constructive Trust, Weintraub, B., & Resnick, A. N. (1990). From the Bankruptcy Courts: Bankruptcy Trustee's Strong-Arm Powers Balked by a Constructive Trust. Uniform Commercial Code Law Journal, 22, 367.
- Creation, Perfection and Enforcement of Security Interests in Intellectual Property Under Revised Article 9 of the Uniform Commercial Code, Axe, K. B. (2002). Creation, Perfection and Enforcement of Security Interests in Intellectual Property Under Revised Article 9 of the Uniform Commercial Code. Banking LJ, 119, 62.
- Simultaneous Attachment of Liens on After-Acquired Property, Carlson, D. G. (1984). Simultaneous Attachment of Liens on After-Acquired Property. Cardozo L. Rev., 6, 505.
- Is it an Interest in Property or a Lien? The Misapplication of the Federal Bankruptcy Code in North Carolina Bankruptcy Court and the Legal Implication in Construction , Ross, L. (2011). Is it an Interest in Property or a Lien? The Misapplication of the Federal Bankruptcy Code in North Carolina Bankruptcy Court and the Legal Implication in Construction Practice.