When two creditors seek payment from a debtor's sold property, which has priority?
Priority follows the chronological order of the loans — the earlier creditor's lien came first and thus takes precedence over later creditors.
Question 2
What happens when multiple promissory notes are all dated on the same day?
When notes share the same date, no creditor can establish priority. The available assets are divided proportionally among all same-date creditors.
Question 3
A borrower's note states 'what I acquire in the future is also under lien.' When is this clause significant?
This future-acquisition clause extends the lien to property the borrower acquires later, which can affect priority disputes when later-acquired property is the only available asset.
Question 4
Why does an incorrectly dated promissory note cause problems for its bearer?
A predated note could let a creditor expropriate property sold before the loan actually occurred, unfairly prejudicing purchasers who had no obligation at that time.
Question 5
If a debtor has one field remaining and two creditors appear with same-date notes, one for 100 zuz and one for 50 zuz — how is the field divided?
Same-date creditors divide the available property proportionally to the amounts owed them — 2:1 in this example — since neither holds temporal priority.