Final answer:
In lien theory states, the borrower retains the title to the property that secures a loan, using the mortgage as a lien, unlike title theory states where the lender holds the title. The crop lien system during the antebellum period illustrates the power dynamics and debt issues related to land ownership and agriculture.
Step-by-step explanation:
In lien theory states, the title to real property that secures a loan remains with the borrower, meaning legal title stays with the homeowner, and the mortgage serves as a lien against the property that secures the right of the lender to take action in the event of default. This contrasts with title theory states, where the lender holds the title until the mortgage is paid off.
The historical context of the crop lien system during the antebellum period offers insights into how debt and property law have impacted landowners and workers. Despite the hardships faced by many landlords due to the fluctuating prices of cotton and high-interest loans, crop lien laws afforded them a significant advantage by ensuring that planters and merchants were compensated first from the sale of crops. This led many to seek reforms from their representatives, including changes to lien laws, advocating for public education, a progressive tax code, and the diversification of industries beyond cotton farming.