Prior Lien

A lien that is recorded prior to any other claims. Prior liens must therefore be paid before any other claims in the event that the collateral that is pledged against the loan must be liquidated. Junior liens are subordinated to prior liens.

A primary mortgage is an example of a prior lien. This mortgage will be paid off before any second or third mortgages, or lines of credit. A perfected security interest is also considered a prior lien.


Investment dictionary. . 2012.

Look at other dictionaries:

  • prior lien — a lien having priority over others attached to the same property. Also called first lien. * * * …   Universalium

  • prior lien — a lien having priority over others attached to the same property. Also called first lien …   Useful english dictionary

  • prior lien — See priority …   Ballentine's law dictionary

  • prior-lien bond — A bond usually arising from reorganization with precedence over another bond of the same issuing company that is equally secured. Bloomberg Financial Dictionary …   Financial and business terms

  • prior lien bond — Fin a bond whose holder has more claim on a debtor’s assets than holders of other types of bonds …   The ultimate business dictionary

  • prior — pri·or / prī ər/ adj 1: earlier in time or order 2: taking precedence (as in importance) a prior lien Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • lien — / lēn/ n [Anglo French, bond, obligation, literally, tie, band, from Old French, from Latin ligamen, from ligare to bind]: a charge or encumbrance upon property for the satisfaction of a debt or other duty that is created by agreement of the… …   Law dictionary

  • prior — I /prayar/ The former; earlier; preceding; preferable or preferred II noun The chief of a convent; next in dignity to an abbot III adj Earlier; elder; preceding; superior in rank, right, or time; as, a prior lien, mortgage, or judgment @ prior… …   Black's law dictionary

  • Lien — For other uses, see Lien (disambiguation). Property law …   Wikipedia

  • lien — /liy(a)n/ A claim, encumbrance, or charge on property for payment of some debt, obligation or duty. Sullins v. Sullins, 65 Wash.2d 283, 396 P.2d 886, 888. Qualified right of property which a creditor has in or over specific property of his debtor …   Black's law dictionary

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