A banker’s lien is an implied pledge. Why? Lien is one of the important rights enjoyed by a banker.
Lien means the right of the creditor to retain the goods and securities owned by the debtors until the debt due from him is repaid. It confers upon the creditor the right to retain the debtor’s security and not the right to sell it.
In case of a pledge, the creditor enjoys the right of sale.
A banker’s right of lien is more than “General lien.” It confers upon him the power to sell the goods and securities in default by the customer. Such a right of lien thus resembles a pledge and is usually called an implied pledge.
The banker thus enjoys the privileges of the pledge and can dispose of the securities after giving proper notice to the customer.
There are several specific types of liens: consensual liens, Tax liens, Contractor’s or mechanic’s liens, and more.
