Who has priority between secured creditors and lien creditors when perfection by any method is achieved?

In the context of secured transactions, priority between secured creditors and lien creditors is primarily determined by the method of perfection. A secured creditor typically has priority over a lien creditor when they have perfected their security interest in accordance with applicable law.

When a secured creditor perfects their interest through filing or possession, they obtain a legal claim on the collateral that takes priority over the claims of lien creditors. This means that as long as the secured creditor has properly perfected their interest—regardless of the method of perfection—they will have the priority needed to claim the collateral in the event of debtor default.

The underlying principle here is that perfection of a security interest is foundational to establishing the secured creditor's rights against third parties, including lien creditors. Since a lien creditor's interest typically arises after any perfection is made by a secured creditor, the law favors the secured creditor who has taken the necessary steps to protect their interest.

In summary, the secured creditor holds the upper hand because their perfected interest grants them superior rights to the collateral, ensuring that they are prioritized in the hierarchy of claims against the debtor’s assets. This understanding of priority is crucial when navigating the complex landscape of secured transactions.