Conventional Lien Law and Legal Definition

Conventional lien is a lien created pursuant to contract between the parties, in circumstances where the law would not otherwise create a lien. A conventional lien is created by operation of law or to secure payment of indebtedness. [Busch v. Busch (In re Busch), 294 B.R. 137, 143 (B.A.P. 10th Cir. 2003)].