Priority
The order in which competing security interests are paid out of the same collateral.
The general rule is first to register wins. A properly registered PMSI is the main exception and can rank ahead of an earlier all-assets registration. Priority is decided by the register, not by who delivered first or who is owed more.
Related terms
- Super-priority — The PMSI's ability to rank ahead of an earlier-registered all-assets security interest over the same goods.
- PMSI (purchase money security interest) — A security interest that secures the purchase price of goods, or a lessor's interest under a PPS lease; it can rank ahead of earlier registrations.
- All present and after-acquired property (AllPAAP) — A collateral class covering everything the grantor owns now or later; the class a bank uses for a general security deed.
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