הלכות מלוה ולווה

When a person owes many debts, the person whose debt was made first has the right to expropriate property first - from the borrower himself and from his creditors. If a later creditor expropriated property before the first creditor, the first creditor may expropriate it from him. For the person whose debt was established first acquires the property.
To what does the above apply? To landed property that the borrower possessed at the time that he took the loan. When, however, he purchased landed property after borrowing from many creditors, no one is granted precedence over the others, even if the borrower wrote to each one in the promissory note: "The property that I will purchase in the future is on lien to you." Instead, all are equal, and whoever comes first and expropriates the property acquires it, even if he was the last to make the loan.

When a borrower writes in the promissory note: "What I will acquire in the future is on lien to you," afterwards purchases a field and then borrows from another person, the field is on lien to the first lender. He has the right to expropriate it first. Similar principles apply even if there are 100 creditors.
There is no concept of precedence with regard to the expropriation of movable property. Instead, whoever comes first and expropriates it acquires it, even if he was the last to make the loan.
If another person came and seized possession of movable property belonging to this debtor in order to acquire the property on behalf of one of the creditors, that person does not acquire the property. The rationale is that a person who seizes property on behalf of a creditor in a situation where a loss is caused to another person does not acquire it. If, however, seizing it would not cause a loss to other people, he does acquire it for him. Similarly, if the borrower tells him: "Acquire this article on behalf of so-and-so," he acquires it for him. None of the other creditors can expropriate this movable property, because another person has already acquired it.

The ensuing laws apply when creditors whose promissory notes are dated on the same date all come to expropriate property together, or when creditors whose promissory notes were dated before one another come to expropriate movable property, for there is no concept of precedence with regard to movable property, or creditors come to expropriate property that the borrower purchased after taking the loan dated last, and the property the borrower possesses is not sufficient to enable each one to collect the debt that is owed to them.
How is the property divided? If when the property is divided in equal portions according to the number of creditors, the person owed the least will receive the amount owed him or less, the property is divided into that number of equal portions.
If dividing the property into equal portions would give the person owed the least more than he is owed, this is what should be done: We divide the sum equally among the creditors so that the person owed the least will receive the money that he is owed. He then withdraws. The remaining creditors then divide the balance of the debtor's resources in the following manner.
What is implied? A person owed three debts: one of a maneh, one for 200 and one for 300. If all the resources of the debtor total 300 zuz, they are divided 100 for each. Similarly, if his resources are less than 300, they should be divided equally among the three.
If his resources total more than 300 zuz, the 300 should be divided equally and then the person owed 100 should withdraw. The remaining money should be divided equally in this same manner.
What is implied? If the debtor's resources total 500 or less, the 300 should be divided equally, and then the person owed 100 should withdraw. The balance of 200 or less should then be divided equally among the remaining creditors, and then the second one withdraws.
If the debtor's resources total 600, the 300 should be divided equally, and then the person owed 100 should withdraw. They then divide 200 between the two equally, and then the second one withdraws. The 100 that remain should then be given to the person owed 300; he thus receives only 300. The debtor's resources should be divided according to this pattern even if there are 100 creditors, if they come to divide the resources at the same time. There are, however, Geonim who rule that the resources should be divided in proportion to the amount owed each creditor.

The fact that a promissory note is not dated correctly creates difficulties for its bearer. For example, Reuven and Shimon each possess a promissory note, stating that Levi owes them money. The promissory note possessed by Reuven is dated Nissan 5, and that possessed by Shimon is dated Nissan, without specifying a day. Levi possesses only one field that is not equal in value to the debts owed them both. Reuven is allowed to take possession of the field, for perhaps the promissory note owed Shimon was signed at the end of Nissan.
Similarly, Shimon cannot expropriate a field that was sold by Levi from lyyar or afterwards. For the purchaser will tell him: "Perhaps the date of your promissory note is the first of Nissan. There is a field that was not sold at that time in the possession of Reuven. Expropriate it and then let Reuven, whose promissory note is dated after yours, come and expropriate the field from me." Therefore, if Reuven and Shimon write each other a document granting power of attorney, they may expropriate a field that was sold after lyyar using both vantage points.
Similar laws apply if Levi sold one field twice, composing separate deeds of sale for Reuven and for Shimon, with one dated on the first of Nissan and one Nissan, without specifying a day.