B. Multiple Pledges: Cases 171–185

Chapter 6: Secured Interests

a. Prior tempore potior iure
Cases 171–178a

b. Substitution
Case 179–180C
Case 181

c. Statutory Security Rights and Priority Privileges
Case 182–185

Cases 171–178a. Although the Roman rule of “prior in time, greater in right” is the default principle in the common law of security interests, it is often subject to statutory exceptions.  For a comparison of these issues as between UCC Article 9 and German law see Hausmann, Jens. “The Value of Public-Notice Filing under Uniform Commercial Code Article 9: A Comparison with the German Legal System of Securities in Personal Property.” 25 Ga. J. Int’l & Comp. L. (1996): 427.

Cases 179–180.  What result under the UCC?

Case 181.  What result under common law mortgage?

Cases 182–185. In U.S. jurisdictions statutory priority is generally granted to tax liens, mechanics liens, and landlord’s liens, all of which are excluded from the scope of the UCC.  See UCC § 9–109 (c) and (d).

Discussion Question:
  1. Would the UCC be applicable to any of the fact-situations presented by these cases?  If so, with what result?

Chapter 6: Introduction | A. Cases 155–170a
B. Cases 171–185

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