Priority of security
The order in which competing secured creditors are entitled to be paid from the same asset.
Related terms
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Secured creditor
A creditor with enforceable security over an asset, giving it rights against that asset if the debt is not paid.
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Security
An asset, charge, guarantee or other right given to support repayment of a debt and improve the creditor’s recovery position.
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Legal charge
A form of security over property that gives a lender enforceable rights if the secured debt is not paid.
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