Priority of Parties Holding Statutory or Common Law Liens

The video tutorial explains the two main categories of liens: possessory and non-possessory. Possessory liens are created to secure payment for work done on a property, while non-possessory liens arise from third-party actions like court judgments or tax obligations. The tutorial discusses the priority of these liens over perfected and non-perfected security interests, emphasizing that statutory rules govern these priorities.

What is a possessory lien typically used for?

• To secure payment for work done on a property

• To transfer property rights

• To establish ownership of a property

• To avoid paying taxes

Which of the following is a common reason for the creation of a non-possessory lien?

• A personal loan

• A court judgment

• A rental contract

• A mortgage agreement

How do tax liens generally compare in priority to other non-possessory liens?

• They have lower priority

• They are not considered liens

• They have the same priority

• They have higher priority

Which type of lien usually has priority over a perfected security interest?

• Non-possessory lien

• Possessory lien

• Unperfected security interest

• Tax lien

What governs the priority of liens and security interests?

• Local customs

• International treaties

• Common law

• Statutory law