A bailee's right to retain possession of a bailor's property as security for payment or performance is called what?

• A. Bailment
• B. Possessory lien
• C. Tenancy
• D. Cooperative ownership

Answer: (B)

A possessory lien is the bailee’s right to hold onto the bailor’s property as security for payment for services or storage. In a bailment, the bailee has possession and a duty to return the property, and when the bailee has provided services or kept the item, they can retain it until charges are paid. This is a security interest that attaches to the bailed property but does not transfer ownership. It’s different from bailment itself, which is the relationship created by delivering possession; tenancy and cooperative ownership relate to real-property interests and aren’t about securing payment for personal property.