Lien creditor definition

Lien creditor means 1 or more of the following:

Lien creditor. , with respect to a vessel, means:

Lien creditor with respect to a watercraft, means:

Examples of Lien creditor in a sentence

• In the event that any Subordinated Claimholder becomes a judgment Lien creditor in respect of Collateral as a result of its enforcement of its rights as an unsecured creditor, to the extent permitted herein, with respect to the Subordinated Obligations, such judgment Lien shall be subject to the terms of this Agreement for all purposes (including in relation to the Senior Obligations) as the other Liens securing the Subordinated Obligations are subject to this Agreement.

• In the event that any Second Lien Secured Party becomes a judgment Lien creditor in respect of Collateral as a result of its enforcement of its rights as an unsecured creditor, such judgment Lien shall be subject to the terms of this Agreement for all purposes (including in relation to the First Liens and the First Lien Obligations) to the same extent as all other Liens, securing the Second Lien Obligations (created pursuant to the Second Lien Security Documents) subject to this Agreement.

• In the event that any Second Lien Claimholder becomes a judgment Lien creditor as a result of its enforcement of its rights as an unsecured creditor, such judgment Lien shall be subject to the terms of this Agreement for all purposes to the same extent as all other Liens securing the Second Lien Obligations subject to this Agreement.

• In the event the ABL Facility Collateral Agent or any other ABL Facility Secured Party becomes a judgment Lien creditor in respect of Term Loan Priority Collateral as a result of its enforcement of its rights as an unsecured creditor, such judgment lien shall be subordinated to the Liens securing Term Loan Obligations on the same basis as the other Liens on the Term Loan Priority Collateral securing the ABL Facility Obligations are so subordinated to such Term Loan Obligations under this Agreement.

• In the event that any Second Lien Secured Party becomes a judgment Lien creditor in respect of Common Collateral as a result of its enforcement of its rights as an unsecured creditor, such judgment Lien shall be subject to the terms of this Agreement for all purposes (including in relation to the First Liens and the First Lien Obligations) to the same extent as all other Liens, securing the Second Lien Obligations (created pursuant to the Second Lien Security Documents) subject to this Agreement.

More Definitions of Lien creditor

Lien creditor means any of the following:

Lien creditor means: (A) a creditor that has acquired a lien on the

Lien creditor means the holder, payee or obligee of a note, bond or other evidence of debt secured

Lien creditor means: 330

Lien creditor. , with respect to a vessel, means: (A) A creditor that has acquired a lien on the vessel by attachment, levy,

Lien creditor. = one who acquires an interest in the debtor’s property “by attachment, levy, or the like” [§ 9-102(a)(52)(A)] – In most states, mere judgment alone does not give π a lien against debtor’s personal property – To become a lien creditor as to item of personalty, π must get either (a) pre-judgment attachment vs. that item, or (b) post-judgment levy on that item • Until Xxxxxx has the sheriff levy on the car, either in a pre-judgment attachment or in a post-judgment xxxx, Xxxxxx has no property right (lien) on the car • Thus, after verdict but before levy, Bank’s SI is still effective vs. Xxxxxx (even though it is unperfected) – § 9-201(a): unless Art. 9 provides otherwise, SI is effective against purchasers and creditors Problem 1 (Review) • Bank has a judgment vs. Xxxxxx in the amount of $75,000 • Xxxx has levied on Xxxxxx’x Rolex, to be sold at sheriff’s sale • You’d be willing to pay up to $25,000 to acquire such a Rolex • Should you buy at the sheriff’s sale? What should you bid? • If the watch is subject to a perfected SI, then as buyer at sheriff’s sale, you would take it subject to that SI [§§ 9-201(a), 9-315(a)(1)] – Thus, you should “discount” your bid by an amount => balance due on senior debt (which you’d have to pay off to get clear title to Rolex) • What if you search the UCC filing system, and you find no UCC-1 filings vs. the debtor that cover the watch? • Risk: there could be an auto-perfected PMSI in the watch, if it was “consumer goods” in the hands of the debtor [§ 9-309(1)] • If you buy the watch, you would take it subject to that perfected PMSI [§§ 9-201(a), 9-315(a)(1)], unless you could qualify for the protection of the “garage sale” rule [§ 9-320(b)] – The watch would have to have been consumer goods in Xxxxxx’x hands, and in your hands, and you’d have to buy and take possession w/out knowledge of prior SI • Friday: Supreme Electronics sold a flat-screen TV to Xxxxxx on an installment contract – Supreme took SI in TV, which it later assigned to Atlantic Commercial Finance (ACF) • Later on Friday: Xxxxxx (who has judgment vs. Xxxxxx) has sheriff xxxx on the TV as it is being delivered to Xxxxxx • ACF asks: For our SI in the TV, do we have, or can we get, priority over Litton’s judgment lien? • If TV is “consumer goods,” Supreme took a PMSI that was automatically perfected [§ 9-309(1)] before Xxxxxx became a lien creditor by levy – If so, ACF (as assignee of Supreme) has priority [§ 9-317(a)(2)(A)] • If Xxxxxx is in default, ACF can repo...

Lien creditor also means an assignee for the benefit of creditors from the time of assignment, a trustee in bankruptcy from the date of the filing of the petition, or a receiver in equity from the time of appointment. 9-102(a)(52)(B)-(D). This is a very important rule. Since a trustee in bankruptcy is a lien creditor under 9-102(a)(52)(C), this provision allows a bankruptcy trustee to avoid an unperfected security interest. In some circumstances, 9-317(a)(2) allows for something called “squeezing out” an intervening lien--i.e., making a future advance on a secured loan after the debtor has become subject to a lien. The secured party holds priority over the lien creditor, but secured parties are unlikely to make such advances due to credit risk. 9-323(b) (below) limits the ability of secured parties to make such squeeze outs. Conflict with a Future Advance A security interest in a future advance has priority over a lien creditor if (i) the advance is made or committed within 45 days after the lien arises, even if made with the knowledge of the lien; or (ii) if the advance is made or committed after the 45 day period, so long as the secured party is without knowledge of the lien at the time of the advance or commitment. 9-323(b). This is not a very significant rule. *Sales and Other Transfers of Collateral General Rule: The Continuation Rule A security interest continues in collateral notwithstanding the disposition of the collateral except (i) when the secured party authorized the disposition free of the security interest or (ii) 2-403(2) or another Article 9 provision operates to allow that transferee to take the collateral free of the security interest. 9-315(a)(1).