Perfected Lien

Perfected Lien (Debt) – A legal filing process wherein a lender’s (Investor’s) first claim on specific collateral is recognized in the bankruptcy of the borrower (Issuer).  Also, a security interest in the collateral that is used to secure the performance of a debt that is protected from third-party claims. A perfected lien for real property must be filed with the correct legal authority, such as the state the Issuer or Property is located within. Perfected liens for real estate are achieved when the mortgage deed of trust is recorded in the land records of the appropriate municipality.