Priority: Rights Between Perfected and Unperfected Creditors
Learn about a secured creditor’s position as against a competing claimant to the same collateral.
In this lesson, we’ll learn about priority, which is how Article 9 designates the order in which creditors competing for the same collateral get paid.
I. Priority: Rights Between Creditors
Not all debtors can, or do, pay their debts. And very seldom does a debtor have only one creditor. When a debtor with multiple creditors can’t meet its obligations, all its creditors must seek repayment from the same limited pool of value. This pool is almost always insufficient to pay all creditors in...