Prior Lien

Prior Lien

A lien on an asset that has a stronger claim than other liens on the same asset. For example, the first mortgage on a house has a prior lien on the house, which takes precedent over the second and third mortgages. See also: Rule of Absolute Priority.
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The outstanding prior lien bonds (through series 2013) are senior to the new series bonds, which are a second lien obligation.
They asserted that the consignors either lacked a perfected security interest in the consigned goods because they did not timely file or continue a UCC-1 financing statement, or if they did timely file a financing statement, the consignors' interests were junior to the prior lien of the secured lender because they failed to deliver the authenticated notice to the secured lender before delivering the consigned goods.
Mason is charged with defrauding Stewart Title of about $6.6 million by pocketing the proceeds of loans to property purchasers intended to pay off prior lien holders.
However, in basic terms, title insurance insures against loss arising from defects of title, and confirms that all prior lien holders are satisfied at the time of closing.
But when the lender went to resell, it learned of a previously undisclosed prior lien against the home.
The property has been pulled out of prior lien sales, as has the apartment building at Bedford Gardens at 555 Wythe Avenue in Brooklyn.
At the time of the settlement, the outstanding principal amount of the bonds totalled $117.7 million: $69.9 million of 4% prior lien bonds, due in 1997; and $47.8 million of 3% general lien bonds, due in 2047.
In addition, Fitch has affirmed the 'A+' rating on approximately $1.3 billion of SUNY's outstanding dormitory facilities revenue bonds series 2013A, 2015A, 2015B and 2017A and the 'AA-' rating on SUNY's approximately $393.7 million outstanding dormitory facilities lease revenue bonds (the prior lien bonds).
As a result, the pre-petition and Chapter 11 secured loans were considered separate transactions and creditors' reclamation rights were not subject to the Chapter 11 lenders' security interest in the debtor's inventory because the secured lenders did not have a prior lien in the reclamation goods that trumped reclamation rights.
This rule applies even though the purchase money mortgagee was put on constructive notice of the prior lien by virtue of its record in the public records.").
Judge Edward Lehner, who decided this case, restated the rule set down by the Court of Appeals -- that upon a foreclosure sale, the bank has a prior lien against common charges of the condominium association and that until the mortgage is fully paid, the condominium association is not entitled to those common charges.
Prior lien bonds are general obligation (GO) of SUNY, payable from all sources legally available to SUNY.

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