Background and Context........................................................................................................... 3. B. Purpose of this Guidance .......................................................................................................... 4. C. Target Audience, Status and Content of the Guidance ............................................................ 5. D. Scope of the Guidance: terminology, Key features and business models................................
A lien holder is someone who has either leased a vehicle to you with an insurable interest, or given you money on loan to buy it. The lien holder is usually a bank or another financial firm. When insuring your car, the lien holder is also included on your policy. This will protect the lien holder in the event that you are in an accident and damage the vehicle. The lien holder has a secured interest in the car.
Check the Title for Lenderâs Liens. A lender will place a lien on the title of a vehicle it finances as a security interest to ensure the loan is paid in full before the car is sold and ownership is transferred to someone else.iens placed by lenders, mechanics and storage companies must all be recorded with the DMV in the state where the car is registered. To check these records, get the vehicle identification number of the car and have the DMV do a search for liens.