Dictionary Of Legal Terms

Law Dictionary

Perfection

When a secured creditor has taken the required steps to perfect his lien, the lien is senior to any liens that arise after perfection. Recording it with the county recorder perfects a mortgage; filing a financing statement with the secretary of state perfects a line in personal property. An unperfected lien is valid between the debtor and the secured creditor, but may be behind liens created later in time, but perfected earlier than the lien in question. The trustee can avoid an unperfected lien.