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.
A lien is a legal claim on a property that allows the lienholder to take possession of the property if certain conditions aren't metâif the money for that property isn't paid, for instance.Houses and cars are types of property that often have liens placed against them.imilarly, lending companies file liens when someone finances a car purchase. The company actually owns the car until it's paid off, so they file a lien on it to ensure that the car owner pays off the balance. When the car is paid off, the lien is removed. Liens are also filed when someone can'tâor doesn'tâpay a debt.