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January 19, 2023
A lien is a claim or legal right placed on assets often used as collateral to repay a debt. A creditor or a court judgment might form a lien. A lien is used to ensure an underlying obligation, such as debt repayment. If the underlying obligation is not met, the creditor may take the asset covered by the lien. Liens are used to secure investments in a variety of ways.
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