Lien vs Security Interest - who wins?

A lien is the right to hold on to goods, and in some cases sell them, in order to ensure payment.  Often the debt will be connected with services related to the goods.

A lien can be obtained by contract, or in certain specific situations the law creates it automatically.  The difference can be significant.

Under the Personal Property Securities Act (PPSA), the holder of a common law or statutory lien may in some cases have special priority over a company's secured creditors.

Types of lien

There are, generally speaking, three categories of lien: contractual, statutory and common law.  Different rights will be available depending on the type of lien claimed.

A contractual lien will simply provide such rights as are stated in the contract.