ideal lien creditor

ideal lien creditor
A term of the law of bankruptcy relative to the preferred status of a trustee in bankruptcy in asserting priorities; a hypothetical creditor holding a lien by legal or equitable proceedings at the date of bankruptcy, whereby the trustee in bankruptcy, being armed with such a lien by virtue of a provision of the Bankruptcy Act, is enabled to assert priorities as against secret liens, unfiled or unrecorded mortgages, and the like. 9 Am J2d Bankr § 857.

Ballentine's law dictionary. . 1998.

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