A connex lien is a form of lien in which the pledged object has a close economic connection with a claim. This means that the lien only arises or is effective if a specific claim exists.
The connex lien is usually created by an agreement between the creditor (the pledgee) and the debtor (the pledgor). This agreement stipulates that the pledged object serves as security for the fulfillment of a certain claim of the pledgee.
A typical example of a connex lien is a lien on a vehicle used by a bank as collateral for a car loan. In this case, the lien arises only if the debtor fails to pay the loan installments on time. The bank can then realize the vehicle as a pledged object in order to satisfy itself from the proceeds.
The connex lien provides the pledgee with additional security, as he can use the pledged object for repayment in the event of non-fulfillment of the claim. However, it is important to note that the lien only exists as long as the underlying claim exists. When the claim is settled, the lien also expires.
The connex lien is regulated in most jurisdictions and is subject to certain requirements and formalities in order to be effective. It is advisable to consult an attorney or other professional for specific questions regarding the contingent lien law, as the exact provisions may vary by jurisdiction.
Your specialist for Spain | General cargo, part load and full load