Prior Lien
Barron's Banking Dictionary:
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Prior Lien
Lien recorded before other secured claims, and payable ahead of other liens if Liquidation of pledged collateral occurs. A first mortgage has priority over second and third mortgages, known as junior liens. A secured creditor holding a perfected Security Interest has priority over liens filed afterward. See also Priority of Lien.
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Barron's Banking Dictionary
Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.
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Mentioned in
Junior Mortgage
(in banking)
Prior-Lien Bond
(finance term)
Junior
(legal term)
Priority
(business term)
» More