Banker's lien meaning

A banker’s lien is a bank’s right to retain a customer’s property that it holds in its capacity as banker as security for sums the customer owes, until the debt is paid or discharged. It is a general, possessory lien arising under the law merchant and recognised in case law (for example, Brandao v Barnett), rather than by statute. It commonly attaches to negotiable instruments, share certificates and other documents of title, and to goods deposited with the bank, unless circumstances show they were delivered for a specific purpose. It does not extend to money standing to the credit of an account (addressed instead by set-off/combination of accounts), to items held merely for safe custody, or to property the bank knows is held on trust. It is excluded by contrary agreement, by notice of a special purpose, or where the bank holds as agent or trustee, and it requires the bank to maintain possession. The lien secures the customer’s general balance but, at common law, is a right of retention only; any power of sale typically depends on express contractual terms. The doctrine is applied consistently in England & Wales, Northern Ireland and Ireland. In Scotland, the analogous right of retention operates...