What is Priority of a Security Interest?

The video tutorial explains the concept of priority in financial terms, focusing on how it determines the order of payment from collateral proceeds. It discusses factors that affect priority, such as the type of security interest and filing time. The tutorial also explores the relationship between priority and risk for creditors, emphasizing the importance of having a high priority to reduce risk. Additionally, it examines how changes in property value can impact priority and risk, highlighting the challenges faced by subordinate secured parties.

What risks do subordinate secured parties face compared to those with higher priority?

How does the level of priority affect the interest rates charged by lenders?