Prior Lien

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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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In Fishbein, the Florida Supreme Court allowed the bank an equitable lien against the homestead under the doctrine of equitable subrogation since the bank's mortgage, which had been obtained by fraud, had been used to satisfy the prior liens against the home.
It can help ensure that you are not liable for problems resulting from deeds that have been improperly obtained, unknown heirs, mistakes in legal documents and tax records, prior liens, and other types of fraud.
There are no other prior liens on the CDT or any other pledged revenues.
A holder of a valid mechanic's lien is treated as a secured creditor and entitled to full payment, provided that the property securing the lien has value in excess of prior liens and encumbrances.
45-37(b) establishes a conclusive presumption that the conditions of prior liens are satisfied after 15 years from the later of two dates: (1) the date on which the instrument requires performance or (2) the date of maturity of the last installment of debt.
45-37(b) allows creditors or purchasers for value from a grantor to benefit from the conclusive presumption that prior liens expire after 15 years irrespective of when those creditors obtain their interest.
Mason took portions of loan proceeds that he received from lenders instead of using the money to pay off prior liens on properties.
The bonds could not be called, they did not contain a sinking fund, and there was no provision for amending the mortgages.(3) Placement of prior liens on the properties securing the bonds was prevented by a negative pledge provision, although mergers were allowed, provided the security of the bondholders was not impaired [2].(4)
The general rule for lenders bidding on property being sold at a sheriff's sale is that the foreclosing lender should bid up to an amount equal to the lesser of (1) the fair market value of the property (determined by a recent appraisal) or (2) the sum of (a) the amount of the lien in question plus (b) all prior liens to be divested by the sale plus (c) costs.
Mason of Princeton took "a portion of loan proceeds he received from lenders which were intended to be used in real estate transactions to pay off prior liens on properties."
Creditors usually arrange to have the public records examined to determine if prior liens exist.
The foreclosure purchaser now owns the property "subject to" the prior liens.

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