§ 2897 Lien Priority By Time

• •If two people have a claim on the same thing, the first one to make the claim usually gets paid first.
• •This rule doesn’t apply to special loans for ships or cargo (like old-timey ship loans).
• •The law has been around since 1872.

Imagine you and your friend both lend money to someone who owns a car. You lent money first, and your friend lent money later.

If the car owner can’t pay both of you back, you get paid first because you made your claim earlier.