What is a subrogation lien?

Question

What is a subrogation lien?

Answer 1

Subrogation means the substitution of one person, place, or item for another, especially the legal doctrine of substituting one creditor for another.  For example, if you are at fault in an automobile accident and are sued, the insurance company is subrogated, i.e. substituted, for you.

A subrogation lien might be something like where you want to buy a car, but instead of using the new car as security on the loan, the bank agrees to accept another car as security.  A substitute lien.

The exact meaning is dependent on the situation.  If you search the internet for "subrogation lien", you'll find several descriptions.