If a secured creditor's interest is perfected after a lien arises, who has priority?

The situation describes a scenario where a secured creditor perfects its security interest after a lien has arisen. In this context, the general rule in secured transactions is that a lien creditor generally has priority over a secured party whose interest is perfected after the lien was established.

When a lien arises, typically through a judicial process such as a judgment lien, it creates a claim against the debtor's property that can take precedence over unsecured claims. If a secured party subsequently perfects its security interest, it does not have priority over a previously established lien. Perfection of a security interest provides public notice of the secured party's claim and can establish priority over interests that arise after perfection, but it does not retroactively affect interests that were already in existence.

This principle operates under the framework of the Uniform Commercial Code (UCC), which governs secured transactions and outlines the priority of various claims against a debtor's assets. Because the lien existed before the secured creditor perfected its interest, the lien creditor retains priority in this situation. This understanding is fundamental for determining the hierarchy of claims against a debtor's property in secured transactions.