What is a negative lien

Lien

characterization

1. Term:Real right to another object, especially a thing, for the purpose of real security of a monetary claim or another claim that can turn into a monetary claim. The BGB (§§ 1204 ff.) Recognizes, in addition to the lien on rights (§ 1273 BGB), only a lien on movable property; The laws do not designate the corresponding rights to land (in parlance: real estate liens; mortgage, land charge, pension debt) and to ships (ship liens) as liens

2. Species: Liens arise as statutory liens or through pledging as contractual liens.

3. On the basis of the lien, the obligee is entitled, in the event of non-fulfillment of the claim secured by the lien, to dispose of the pledged item after it is ready for pledge satisfaction to use his demand. In insolvency proceedings, the pledgee can request separate satisfaction (segregation).

4. The order implies the existence of a Advancement ahead. The debtor and the pledgee must be identical. The lien can also be ordered for future or conditional claims. But the lien is always dependent on the claim (called accessory): If the claim expires, the lien also expires

5. Special regulation for liens on aircraft in the law on rights to aircraft dated 02.26.1959 (Federal Law Gazette I 57) with later amendment.

Lien on movable property

1. Order: Through an agreement between the obligee and the owner of the thing and handing over the thing to the obligee, it is sufficient to provide joint ownership (co-closure); if the thing is in the possession of a third party, assignment of the claim for surrender with notification of the pledge to the owner; see. §§ 1204 ff. BGB

2. The lien goes out by law with the repayment of the secured claim or with the return of the pledge to the pledger or owner or if it meets the property in the same person.

Lien on rights

1. Order: Takes place in the same way in which the right is transferred (§ 1274 BGB).

a) In order to establish a lien on a right entered in the land register, as a rule, in addition to the agreement between the pledgee and the pledgee, the entry of the lien in the land register is required; In the case of letter mortgages and letter mortgages, however, a written declaration of pledge and delivery of the mortgage letter (mortgage letter) is sufficient.

b) The pledging of claims also requires notification of the pledging to the debtor (§ 1280 BGB). In order to avoid reporting, an assignment by way of security is usually chosen instead of pledging.

2. Is a Advancement pledged, the debtor can only make joint payments to the creditor and the pledgee before the pledge is ready for pledge. Either of the two can request the deposit or, if necessary, the surrender of the item to be provided to a custodian appointed by the court (Section 1281 BGB). From the maturity of the pledge on, the pledgee can also demand payment from himself (§ 1282 BGB).

3. The pledging of Order papers takes place through agreement and handover of the endorsed paper (pledge endorsement).

4. Bearer papers are pledged like movable property and usually also sold in accordance with these regulations (Section 1293 BGB).

5. The lien on rights goes out in accordance with the lien on movable property.

6. Economical meaning: Lien on rights is limited. Pledging of accounts receivable is rare; Particularly in dealings with banks, the assignment of security in the form of a silent assignment is preferred. The most common there is the pledging of securities (Lombard business). In the case of property rights (mortgages, etc.), pledging is not so rare.

Realization of the deposit

Usually happens through auctioning, pledge sale or collection of the pledged claim.

See also pledge recovery.