Lien

• Lien is a lender's ( creditor's ) right to hold property of the borrower ( debtor ) until the debt is paid . 
• A statutory lien may be created only by a propretor or lessee of land depositing the issue document of title or the duplicate lease with the lender as security for a loan . The lender must then apply for the entry of a lien-holder's caveat , and then he becomes entitled to a lien over the land or lease only upon the entry of such caveat . A lien is not registered in the issue document of title , but it is endorsed int he register document of title at Registry or Land Office by entry of a lien-holder's caveat . 
• Lien as a method of taking security is usually used when the loan is short term , or as a 'collateral' security . 
• A lien is terminated by the withdrawal of caveat , and the return of the issue document of title upon payment of the debt and interest . 
• NLC provides that the remedy given to the lien-holder is to apply to the court for an order for the sale of the land or lease ( even if the debt itself is barred by limitation law ) .