Secured Financing and Priorities Among Creditors (with Thomas Jackson), 88 Yale L.J. 1143 (1979)
One of the principal advantages of a secured transaction is the protection it provides against the claims of competing creditors. A creditor asserting a security interest in his debtor's property is likely to find himself in competition with a wide assortment of other claimants. For example, his security interest may be challenged by another creditor with a consensual security interest, by a creditor with a judgment or execution lien, by a creditor claiming a right to the collateral under some general statutory entitlement such as a repairman's lien, by a seller to or a buyer from the debtor, or by the debtor's trustee in bankruptcy. To a considerable extent, the value of a security interest depends upon the degree to which it insulates the secured party from the claims of the debtor's other creditors.
Date of Authorship for this Version
Kronman, Anthony Townsend and Jackson, Thomas H., "Secured Financing and Priorities Among Creditors" (1979). Faculty Scholarship Series. Paper 1070.