What are "consensual liens"?

Consensual liens refer to security interests or claims that are established through an agreement between two parties, typically a borrower and a lender. In this context, when a borrower takes out a loan, they often agree to collateralize the loan with certain assets, thereby granting the lender a security interest in those assets. This relationship is built on mutual consent, as both parties acknowledge and agree to the terms of the lien protecting the lender's interests in the property until the borrower fulfills their obligations under the loan agreement.

The essence of a consensual lien is that it is agreed upon rather than imposed. This is why the other answers do not align with the definition of a consensual lien: liens imposed without consent, those created by non-monetary agreements, or those requiring court intervention do not involve the mutual agreement between the parties that defines consensual liens. Thus, "security interests agreed upon by borrower and lender" aptly captures the nature of consensual liens in the context of secured transactions.