Tax Lien | Practical Law

Tax Lien | Practical Law

Tax Lien

Tax Lien

Practical Law Glossary Item 7-382-3869 (Approx. 2 pages)

Glossary

Tax Lien

A claim registered against a property by a taxing authority for unpaid taxes. There are federal tax liens and state tax liens.
A tax lien is a type of statutory lien that is created by operation of law and does not require the consent of, or a security agreement with, the debtor. Generally, in a financing transaction, the borrower is asked to clear any tax liens filed against any loan parties or any of its assets before the closing date.