An equitable “lien” is no more than a right to go against an asset for a claim. It creates an equitable interest in the asset and, therefore, security for the claim. It may initially be construed as a floating charge focused on a number of assets fastening on a particular asset (i.e. crystallising) on a specified event. It is similar to the common law lien in that it may be created by contract or recognised as stemming from a legal relationship. It is distinct from the common law lien in that:
The rest of this document is only available to i-law.com online
If you are already a subscriber, please enter your details below to log in.