Definition from Nolo’s Plain-English Law Dictionary
The right to be ahead of the rights or claims of others. In bankruptcy law, the right to collect before other creditors is given to taxing authorities, the holders of court judgments, secured creditors, bankruptcy trustees, and bankruptcy attorneys. The right can also apply to mortgages, deeds of trusts, or liens, which are given priority in the order they were recorded.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:22 pm