Lien on Me: Priority of State Law Possessory Liens over Perfected Security Interests: In re Borden

October 2007 American Bankruptcy Institute Journal, Vol. XXVI, No. 8

The Bankruptcy Code1 recognizes three types of liens: judicial,2 statutory3 and consensual.4 Recently, the Eighth Circuit Bankruptcy Appellate Panel (BAP) issued an opinion regarding priorities between a lender with a valid consensual blanket lien on a debtor’s assets and a party asserting a state law statutory artisan’s lien.