Lien subordination agreements are common in commercial transactions. Section 9-339 of the Uniform Commercial Code (“UCC”) generally permits a secured creditor with a prior security interest to subordinate such priority by agreement.
Circular Lien Priorities: Tackling Three-Party Subordination
This article discusses the priority issues that can arise where three or more creditors claim a security interest in the same collateral and a recent Seventh Circuit case, <i>Caterpillar Financial Services v. Peoples National Bank,</i> that addresses this infrequently adjudicated problem.
By
Alan M. Christenfeld And Barbara M. GoodsteinThis premium content is locked for LawJournalNewsletters subscribers only
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