Lien

A lien on a vehicle is a form of collateral. The borrower agrees to repay the loan in accordance with the terms of the loan agreement, and the lender is granted a security interest in the vehicle as a condition of the loan.

The security interest or lien gives the lender the right to repossess the vehicle and sell it to pay the loan if the borrower defaults on the loan. Until the loan is repaid in full, the lien on the vehicle will remain in place. The lien is released when the borrower repays the loan. The vehicle is now the full property of the borrower, free and clear of any liens.

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