First lien

First lien — the first-registered security interest, paid first from foreclosure proceeds. Priority runs by registration, not by handshake or date of friendship: pull the title (3.8’s discipline) or the vehicle’s CR yourself and confirm no prior encumbrance stands ahead of you. A second lien stands behind the first lender’s entire claim — interest, penalties, foreclosure costs — which is why retail-scale second-lien private lending is how sophisticated people donate money.

First used in: 4.5 · Private lending: being the bank