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...