What is a lien? 

A lien is a legal claim that allows a lender to keep possession of an asset belonging to another business or person until a debt owed by that business or person is paid in full or satisfied. For example, if a borrower pledges her work truck against a business loan, the lender will place a lien on the title of the work truck. This allows the lender to hold legal title to the work truck until the business loan is satisfied or paid in full. If the loan is not repaid, the lender can repossess the work truck via the lienholder provision and sell it to satisfy the loan.