Series 79: Perfected Lien

Taken from our FINRA Investment Banking Exam

Definition of the term Perfected Lien...

what a creditor has after it properly asserts its rights with regard to a piece of the debtor’s property, by making the proper filings with the correct legal authority. For example, a mortgage lender who records the mortgage with the county where the property is located has perfected its lien, making it easier to foreclose on the property if the borrower defaults.

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