A legal claim that allows creditors to liquidate loan collateral is a:

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A lien is a legal claim that allows creditors to liquidate or sell the collateral pledged by a borrower, in case of default or non-payment of the loan.  A loan application is a request made by the borrower for a loan, a note is a legal document that outlines the terms and conditions of the loan agreement, a security claim refers to ownership of an asset that can be sold or traded, and a loan rollover is a process of extending the maturity date of the existing loan.

A Legal Claim That Allows Creditors to Liquidate Loan Collateral