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46-446: RHS administers direct loans , loan guarantees and grants . Direct loans are made and serviced by USDA staff; loan guarantees are made to banks or other private lenders, and grants are made directly to a person or organization. RHS works with other federal agencies, and a number of both nonprofit and private organizations nationally, in order to pool resources to help America's rural residents most effectively. The RHS National Office

92-412: A mover's lien under UCC § 7-307/308 to withhold a customer's goods to secure payment. This is a possessory lien and is the nonconsensual type of lien (because it exists automatically under a statute instead of being affirmatively agreed upon). However, the concept of a mover's lien is often abused in a moving scam known as a hostage load , whereby the moving company will extort money not owed by

138-567: A trustee in bankruptcy ; an unperfected lien may not be. In the United States, references to an "equitable lien" is a right, enforceable only in equity , to have a demand satisfied out of a particular fund or specific property without having possession of the fund or property. An equitable lien is a legal remedy rather than a security interest created to contemplate or support a transaction. In US law, such liens characteristically arise in four circumstances: Movers are typically entitled to

184-411: A "rural area" as a result of data received from or after the 1990, 2000, or 2010 decennial census, and any area deemed to be a "rural area" at any time during the period beginning January 1, 2000, and ending December 31, 2010, shall continue to be so classified until the receipt of data from the decennial census in the year 2020, if such area has a population in excess of 10,000 but not in excess of 35,000,

230-485: A combination of both. Such loans may be made by foreign governments to developing countries or may be offered to employees of lending institutions as an employee benefit (sometimes called a perk ). Loans can also be categorized according to whether the debtor is an individual person (consumer) or a business. Common personal loans include mortgage loans , car loans, home equity lines of credit, credit cards , installment loans , and payday loans . The credit score of

276-412: A financial institution, is given security – a lien on the title to the property – until the mortgage is paid off in full. In the case of home loans, if the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it. Similarly, a loan taken out to buy a car may be secured by the car. The duration of

322-540: A lien under UK insolvency law, it has been argued that such statutory rights are not in fact liens, but rights analogous to liens, although an argument may be made that this is a distinction without a difference. It has also been argued that an agreement by contract that one party may retain the goods of another party until paid is not a lien, as under the common law, liens could only be nonconsensual. However, under insolvency law, such rights will be treated as liens even if they are not expressed as liens. A maritime lien

368-426: A line of credit based on the quality of the securities pledged. Gold loans are issued to customers after evaluating the quantity and quality of gold in the items pledged. Corporate entities can also take out secured lending by pledging the company's assets, including the company itself. The interest rates for secured loans are usually lower than those of unsecured loans. Usually, the lending institution employs people (on

414-405: A nuisance, self-defence or ejection of trespassers to land". Equitable liens are an unusual species of property right, usually considered sui generis . Common-law liens are divided into special liens and general liens . A special lien, the more common kind, requires a close connection between the property and the service rendered. A special lien can only be exercised regarding fees relating to

460-426: A passive right to retain, a lien cannot be transferred; it cannot be asserted by a third party to whom possession of the goods is given to perform the same services that the original party should have performed; and if the chattel is surrendered to the lienor, the lien entitlement is lost forever (except for where the parties agree that the lien shall survive a temporary re-possession by the lienor). A lienee who sells

506-484: A provider of loans is one of the main activities of financial institutions such as banks and credit card companies. For other institutions, issuing of debt contracts such as bonds is a typical source of funding. A secured loan is a form of debt in which the borrower pledges some asset (i.e., a car, a house) as collateral . A mortgage loan is a very common type of loan, used by many individuals to purchase residential or commercial property. The lender, usually

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552-455: A purely possessory form of security interest; indeed, when possession of the property is lost, the lien is released. However, common-law countries also recognize a slightly anomalous form of security interest called an "equitable lien", which arises in certain rare instances. Despite their differences in terminology and application, there are some similarities between liens in the US and elsewhere in

598-454: A roll or on a contract basis) to evaluate the quality of pledged collateral before sanctioning the loan. Unsecured loans are monetary loans that are not secured against the borrower's assets. These may be available from financial institutions under many different guises or marketing packages: The interest rates applicable to these different forms may vary depending on the lender and the borrower. These may or may not be regulated by law. In

644-460: A security interest upon ships of a nature otherwise unknown to the common law or equity. It arises purely by operation of law . It is a claim upon the property, both secret and invisible, often given priority by statute over other forms of registered security interest. Although characteristics vary under the laws of different countries, it can be described as: Throughout the world, there are many different types and sub-divisions of liens. Not all of

690-429: Is a lien on a vessel given to secure the claim of a creditor who provided maritime services or suffered an injury from the vessel's use. Maritime liens are sometimes referred to as tacit hypothecation . Maritime liens have little in common with other liens under the laws of most jurisdictions. The maritime lien has been described as "one of the most striking peculiarities of Admiralty law ". A maritime lien constitutes

736-475: Is a loan on which the interest is reduced by an explicit or hidden subsidy . In the context of college loans in the United States , it refers to a loan on which no interest is accrued while a student remains enrolled in education. A concessional loan, sometimes called a "soft loan", is granted on terms substantially more generous than market loans either through below-market interest rates, by grace periods, or

782-468: Is discharged of indebtedness. Thus, if a debt is discharged, then the borrower essentially has received income equal to the amount of the indebtedness. The Internal Revenue Code lists "Income from Discharge of Indebtedness" in Section 61(a)(12) as a source of gross income . Example: X owes Y $ 50,000. If Y discharges the indebtedness, then X no longer owes Y $ 50,000. For purposes of calculating income, this

828-406: Is in the hands of the creditor usually constitutes perfection. Where the property remains in the hands of the debtor, a further step must be taken, like recording a notice of the security interest with the appropriate office. Perfecting a lien is essential in protecting the secured creditor's interest in the property. A perfected lien is valid against bona fide purchasers of property and even against

874-904: Is located in Washington, D.C. , and is responsible for setting policy, developing regulations, and performing oversight. In the field, RHS operations are carried out through the USDA's state and local Rural Development offices and service centers, several of which are located in each state and Puerto Rico . (Four multistate offices exist in addition to local offices within the states -- Vermont / New Hampshire ; Massachusetts / Connecticut / Rhode Island ; Maryland / Delaware ; and Florida / Virgin Islands .) The Customer Service Center, located in St. Louis, Missouri , provides loan origination and servicing directly to RHS Single-Family Housing borrowers. For all Rural Development programs,

920-411: Is no power of sale which arises at common law, although some statutes have also conferred an additional power of sale, and it is possible to confer a separate power of sale by contract. The common-law liens are closely aligned to the so-called "common callings" but are not co-extensive with them. A common-law lien is a very limited type of security interest. Apart from the fact that it only amounts to

966-409: Is not based upon credit score but rather credit rating . The most typical loan payment type is the fully amortizing payment in which each monthly rate has the same value over time. The fixed monthly payment P for a loan of L for n months and a monthly interest rate c is: For more information, see monthly amortized loan or mortgage payments . Predatory lending is one form of abuse in

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1012-472: Is rural in character, and has a serious lack of mortgage credit for lower and moderate-income families. An exception to the rural eligibility requirements is the Farm Labor Housing Program]l (Section 514/516), which is the only federal program available for development of housing for farm workers. This program is available in both rural and urban areas. Loan In finance , a loan is

1058-569: Is still a lack of central nexus. Although arguably not liens as such, two other forms of encumbrance are sometimes referred to as liens. Certain statutes provide a passive right to retain property against its owner as security for obligations. For example, section 88 of the Civil Aviation Act 1982 of the United Kingdom permits an airport to detain aircraft for unpaid airport charges and aviation fuel. Although this right has been treated as

1104-515: Is treated the same way as if Y gave X $ 50,000. For a more detailed description of the "discharge of indebtedness", look at Section 108 ( Cancellation-of-debt income ) of the Internal Revenue Code . US specific: Lien A lien ( / ˈ l iː n / or / ˈ l iː ən / ) is a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation. The owner of

1150-549: The Racketeer Influenced and Corrupt Organizations Act . Disputes between legitimate lienholding of chattels versus hostage-loading can sometimes be averted by the customer, including an advanced (before-the-fact) consensual waiver of the mover's right to a lien in the written contract, obligating the moving company to deliver the goods with reasonable dispatch regardless of payment disputes. Failure to do so would constitute conversion or trespass to chattels . Outside

1196-465: The US, a common-law lien may be defined as a passive right to retain a chattel (and, sometimes, documentary intangibles and papers) conferred by law. Modern law has generally left the legal lien to cases where it has been historically established without any real effort to make it applicable to current conditions. In Tappenden v Artus [1964] 2 QB 185, Diplock LJ referred to a lien as a "self-help" remedy, like "other primitive remedies such as abatement of

1242-419: The US, a lien characteristically refers to nonpossessory security interests (see generally: Security interest § Types ). In other common-law countries, the term lien refers to a very specific type of security interest, being a passive right to retain (but not sell) property until the debt or other obligation is discharged. In contrast to the usage of the term in the US, in other countries it refers to

1288-481: The United Kingdom, when applied to individuals, these may come under the Consumer Credit Act 1974 . Interest rates on unsecured loans are nearly always higher than for secured loans because an unsecured lender's options for recourse against the borrower in the event of default are severely limited, subjecting the lender to higher risk compared to that encountered for a secured loan. An unsecured lender must sue

1334-421: The acceptable interest rate has varied, from no interest at all as in the biblical prescript, to unlimited interest rates. Credit card companies in some countries have been accused by consumer organizations of lending at usurious interest rates and making money out of frivolous "extra charges". Abuses can also take place in the form of the customer defrauding the lender by borrowing without intending to repay

1380-502: The borrower is a major component in underwriting and interest rates ( APR ) of these loans. The monthly payments of personal loans can be decreased by selecting longer payment terms, but overall interest paid increases as well. A personal loan can be obtained from banks, alternative (non-bank) lenders, online loan providers and private lenders. Loans to businesses are similar to the above but also include commercial mortgages and corporate bonds and government guaranteed loans Underwriting

1426-413: The borrower, obtain a money judgment for breach of contract, and then pursue execution of the judgment against the borrower's unencumbered assets (that is, the ones not already pledged to secured lenders). In insolvency proceedings, secured lenders traditionally have priority over unsecured lenders when a court divides up the borrower's assets. Thus, a higher interest rate reflects the additional risk that in

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1472-404: The chattel unlawfully may be liable for conversion and surrendering the lien. In common-law countries, equitable liens give rise to unique and complex issues. An equitable lien is a nonpossessory security right conferred by operation of law, which is similar in effect to an equitable charge . It differs from a charge in that it is nonconsensual. It is conferred only in very limited circumstances,

1518-415: The common-law world. Liens can be "consensual" or "nonconsensual" ("voluntary" or "involuntary" in different states). Consensual liens are imposed by a contract between the creditor and the debtor: Nonconsensual liens typically arise by statute or by the operation of the common law . Those laws give a creditor the right to impose a lien on an item of real property or a chattel by the existence of

1564-619: The customer by refusing to deliver the goods unless the customer pays money inflated beyond the contractual estimate . Because the customer is interested in obtaining their goods, they are under duress to pay the ransom. Hostage loads in at least the interstate context are illegal under 49 USC 13905. The Federal Motor Carrier Safety Administration (FMCSA) regulates the moving industry and sometimes takes enforcement action by fining and delicensing offending moving companies. Moving companies that deliberately engage in hostage-loading may also be considered to be engaging in racketeering in violation of

1610-432: The event of insolvency, the debt may be uncollectible. Demand loans are short-term loans that typically do not have fixed dates for repayment. Instead, demand loans carry a floating interest rate , which varies according to the prime lending rate or other defined contract terms. Demand loans can be "called" for repayment by the lending institution at any time. Demand loans may be unsecured or secured. A subsidized loan

1656-433: The granting of loans. It usually involves granting a loan in order to put the borrower in a position that one can gain advantage over them; subprime mortgage-lending and payday-lending are two examples, where the moneylender is not authorized or regulated , the lender could be considered a loan shark . Usury is a different form of abuse, where the lender charges excessive interest. In different time periods and cultures,

1702-427: The instant transaction; the lienor cannot use the property held as security for past debts. A general lien affects all of the property of the lienee in the possession of the lienor and stands as security for all of the debts of the lienee to the lienor. A special lien can be extended to a general lien by contract, which is commonly done in the case of carriers. A common-law lien only gives a passive right to retain; there

1748-523: The loan is much shorter – often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. In a direct auto loan, a bank lends the money directly to a consumer. In an indirect auto loan, a car dealership (or a connected company) acts as an intermediary between the bank or financial institution and the consumer. Other forms of secured loans include loans against securities – such as shares, mutual funds, bonds, etc. This particular instrument issues customers

1794-537: The loan. Most of the basic rules governing how loans are handled for tax purposes in the United States are codified by both Congress (the Internal Revenue Code) and the Treasury Department (Treasury Regulations – another set of rules that interpret the Internal Revenue Code). Although a loan does not start out as income to the borrower, it becomes income to the borrower if the borrower

1840-451: The most common (and least ambiguous) concerning the sale of land; an unpaid vendor has an equitable lien over the land for the purchase price, notwithstanding that the purchaser has gone into occupation of the property. It is seen as a counterweight to the equitable rule, which confers a beneficial interest in the land on the purchaser once contracts are exchanged for purchase. It is a matter of conjecture how far equitable liens extend outside

1886-501: The property, who grants the lien, is referred to as the lienee and the person who has the benefit of the lien is referred to as the lienor or lien holder . The etymological root is Anglo-French lien or loyen , meaning "bond", "restraint", from the Latin ligamen , from ligare "to bind". In the United States , the term lien generally refers to a wide range of encumbrances and would include other forms of mortgage or charge. In

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1932-467: The reallocation of the subject asset (s) for a period of time, between the lender and the borrower . The interest provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract , which can also place the borrower under additional restrictions known as loan covenants . Although this article focuses on monetary loans, in practice, any material object might be lent. Acting as

1978-422: The relationship of creditor and debtor. Those liens include: Liens are also "perfected" or "unperfected" (see Perfection (law) ). Perfected liens are those for which a creditor has established a priority right in the encumbered property concerning third-party creditors. Perfection is generally accomplished by taking steps required by law to notify third-party creditors of the lien. The fact that an item of property

2024-493: The rural area definition was revised by the 2014 Farm Bill. Specifically, the Farm Bill allows some areas with populations up to 35,000 to remain eligible until receipt of the 2020 decennial census. Effective February 2, 2015, areas with populations greater than 35,000 no longer qualify for Rural Housing Program assistance. Any area classified as "rural" or a "rural area" prior to October 1, 1990, and determined not to be "rural" or

2070-423: The tender of money by one party to another with an agreement to pay it back. The recipient, or borrower, incurs a debt and is usually required to pay interest for the use of the money. The document evidencing the debt (e.g., a promissory note ) will normally specify, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and the date of repayment. A loan entails

2116-443: The unpaid vendor's lien. Equitable liens have been held to exist in several cases involving choses in action , but not yet concerning chattels. The Australian courts have been the most receptive towards equitable liens concerning personal property (see Hewett v Court (1983) 57 ALJR 211), but a review of the cases still leaves a lack of clarity concerning the principles upon which an equitable lien will be imposed. But overall, there

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