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Specific lien
Also called specific collateral lien, particular lien.
A security interest attached to identified property only, leaving the rest of the business's assets free of that creditor's claim.
Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.
What it means
The collateral description does the limiting. "One 2023 Freightliner Cascadia, VIN ending 4471" reaches that truck. "All equipment now owned or hereafter acquired" does not — that is a blanket description dressed as a category. The narrower the description, the narrower the claim, and the more room the business keeps to finance other assets elsewhere.
Equipment finance is the usual home for specific liens, and a purchase-money security interest is the strongest version: a lender financing the acquisition of a particular asset can, if it perfects within the statutory window, take priority in that asset over an existing blanket filing. That is how a business already carrying an all-assets UCC can still finance a machine.
Specific liens leave a cleaner record. A UCC search showing one filing against a named vehicle tells the next lender exactly what is encumbered; a search showing an all-assets filing tells it nothing is available.
Where this one catches people
Owners read the equipment finance agreement, see the machine described, and stop reading. Many equipment contracts pair the specific description with an additional blanket grant or a cross-collateralisation clause tying the machine to any other obligation to that lender or its affiliates. Check whether the collateral clause ends where the equipment description ends.
Where you will meet this term
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Specific lien — common questions
What does specific lien mean?
A security interest attached to identified property only, leaving the rest of the business's assets free of that creditor's claim.
Where does specific lien catch people out?
Owners read the equipment finance agreement, see the machine described, and stop reading. Many equipment contracts pair the specific description with an additional blanket grant or a cross-collateralisation clause tying the machine to any other obligation to that lender or its affiliates. Check whether the collateral clause ends where the equipment description ends.
Is specific lien the same as an interest rate?
Specific lien is defined above; if you are comparing it against a rate, check whether the two measures share a time dimension before you put them side by side.
Which products does specific lien apply to?
Term Loan, Equipment Financing.
Is there a worked example of specific lien?
Not on this entry. Where a term is arithmetic, the arithmetic is shown; this one is not primarily a calculation.
What else should I read alongside specific lien?
Blanket lien, Cross-collateralization, Purchase-money security interest, Security agreement, UCC-1 financing statement.
Has this definition been checked?
Not yet. This entry is drafted and live, and the notice at the top says so. Confirm anything you are about to act on.
Is this legal advice?
No. It is a definition. What a clause does in your contract, in your state, is a question for a lawyer licensed where you are.
Can I suggest a term?
Yes — [email protected]. The glossary grows from what people are actually shown in contracts.