Define: General Lien

A general lien is a legal right that gives a creditor the authority to retain possession of a debtor’s property until the debtor fulfils all of their obligations, regardless of the particular debt or transaction that led to the lien. Unlike a specific lien, which is tied to a particular asset or transaction, a general lien allows the creditor to seize any of the debtor’s property to satisfy any outstanding debts owed by the debtor. General liens are typically granted through a contractual agreement or by statute and are commonly used by banks, financial institutions, and other creditors to secure repayment of debts. Examples of general liens include the right of a bank to retain a customer’s assets until a loan is repaid or the right of a storage facility to retain a customer’s belongings until unpaid storage fees are settled.

A lien applied to all goods, not just the goods giving rise to the debt, owned by the lienee, but excluding land, or real property.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March 2024.