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Lienholder

A bank or financial institution that has an interest in your vehicle until the loan is paid off

Detailed Explanation

When you finance a vehicle, the lender becomes a lienholder and has legal rights to the vehicle until you pay off your loan. They're typically listed on your insurance policy and vehicle title.

Practical Example

When Paul financed his new SUV, First National Bank became the lienholder and required him to maintain full coverage insurance until the loan was repaid.

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