When Charges Collide – Priority Battles in Structured Finance

Security interests are a bit like a crowded pub on a Friday night. Everyone thinks they’re next to be served, but only one person actually gets the pint first. In structured finance, that jostling is called priority – and who gets served first can mean the difference between a full recovery and an empty glass.

If you read our article Securing the Bag, you’ll know why lenders take security in the first place. In this article, we’re following on by looking at what happens when multiple creditors show up at the same bar. How does English law decide who drinks first, who waits, and who goes home thirsty?