Administrative priority creditors do not rank ahead of a secured creditor with respect to its security interest, but generally are afforded a first priority (see chap. V, paras. 45 47 and 66) that ranks ahead of ordinary unsecured creditors and any statutory priorities, for example, taxes or social security claims.

Nevertheless, the claims of foreign creditors other than those concerning tax and social security obligations shall not be ranked lower than identify the class of general non preference claims, while providing that a foreign claim is to be ranked lower than the general non preference claims if an equivalent local claim (e.g. claim for a penalty or deferred payment claim) has a rank lower than the general non preference claims .

(i) permitting the insolvency administrator to encumber the assigned receivables with privileged claims for taxes, wages and similar privileges, provided that the assignee is treated fairly and equitably with other creditors whose receivables may be so encumbered,

The insolvency law should establish the priority that may be accorded to post commencement finance, ensuring at least the payment of the post commencement finance provider ahead of ordinary unsecured creditors, including those unsecured creditors with administrative priority.

(ff) Priority means the right of a person to derive the economic benefit of its security right in an encumbered asset in preference to a competing claimant.

Where the insolvency law establishes the level of priority that generally can be given, for example, an administrative priority, court approval may not be required.

Priority among several assignees

(4) An assignee asserting priority under the provisions of this Convention has priority over an assignee asserting priority based on grounds other than the provisions of this Convention.

The super priority ranks ahead of administrative creditors.

2. If proceeds are received by the assignor, the right of the assignee in those proceeds has priority over the right of a competing claimant in those proceeds to the same extent as the assignee's right had priority over the right in the assigned receivable of that claimant if

An insolvency law can recognize the need for such post commencement finance, provide authorization for it and create priority or security for repayment of the lender.

4. If a receivable is assigned pursuant to a contract of assignment concluded before the date when this Convention enters into force in respect of the Contracting State referred to in article 1, paragraph 1 (a), the right of the assignee has priority over the right of a competing claimant with respect to the receivable to the extent that, under the law that would determine priority in the absence of this Convention, the right of the assignee would have priority.

4. If a receivable is assigned pursuant to a contract of assignment concluded before the date when the denunciation takes effect in respect of the Contracting State referred to in article 1, paragraph 1 (a), the right of the assignee has priority over the right of a competing claimant with respect to the receivable to the extent that, under the law that would determine priority under this Convention, the right of the assignee would have priority.

1. The law of the State in which the assignor is located governs the priority of the right of an assignee in the assigned receivable over the right of a competing claimant.

Proposals were made to replace the words quot secured claims quot and quot rights in rem quot , with reference to quot privileged claims quot , quot preferred claims quot or other expressions with a similar meaning.

1. If proceeds are received by the assignee, the assignee is entitled to retain those proceeds to the extent that the assignee's right in the assigned receivable had priority over the right of a competing claimant in the assigned receivable.

In addition, it was observed that a provision giving priority to the first assignee to register, if applied to tort receivables, might impair settlement in which all parties involved in a tort were supposed to participate (this would be particularly so if the registration would operate to establish a priority right even with regard to a future tort receivable).

Other insolvency laws provide for a super administrative priority if credit or finance is not available where it is ranked as an administrative claim that is pari passu with other administrative claims such as fees of the insolvency representative or professional employed in the case.

Mr. Manhotra (India) said that his country was considering the introduction of provisions pertaining to the right of remedy and the right to reparations for victims of human rights violations.

An assignee entitled to priority may at any time subordinate its priority unilaterally or by agreement in favour of any existing or future assignees.

(c) The priority rules set forth in section III of the annex

They recommended that the legal foundation of the right to education should be given highest priority.

The law should provide that a holder of a security right entitled to priority may at any time subordinate its priority unilaterally or by agreement in favour of any existing or future competing claimant.

(b) The effectiveness against third parties and the priority over the rights of competing claimants of a security right in proceeds are governed by the same law as the law of the State whose law governs governing the effectiveness against third parties and the priority over the rights of competing claimants of a security right in original encumbered assets of the same kind as the proceeds.

(d) The priority rules set forth in section IV of the annex or

The insolvency law should specify that, if a security right is entitled to priority under law other than the insolvency law, that priority continues unimpaired in insolvency proceedings except if, pursuant to the insolvency law, another claim is given priority.

Some insolvency laws provide that new lending may be afforded some level of priority over existing secured creditors, (sometimes referred to as a priming lien ).

Priority between the assignee and the insolvency administrator or creditors of the assignor

Network Priority

It was suggested that it might be sufficient to refer to quot non priority or non preference claims quot .

Nevertheless, the claims of foreign creditors other than those concerning tax and social security obligations shall not be ranked lower than identify the class of unsecured non preference claims, while providing that a foreign claim is to be ranked lower than the unsecured non preference claims if an equivalent local claim (e.g. claim for a penalty or deferred payment claim) has a rank lower than the unsecured non preference claims . quot

That suggestion was objected to on the grounds that the benefit derived from purging the public record outweighed the risk that assignees may lose their priority rights which the assignees could protect by renewing their registrations.

(c) The victims apos right to reparations.

It was thus suggested that article 10 should provide that claims of foreign creditors had at least to be treated in the same manner as local non priority claims.

(e) The priority rules set forth in articles 7 and 9 of the annex.

and Mortgages and Related Subjects

CONTENTS (continued)

In some legal systems, all of the priority, super priority, security and priming lien options for attracting post commencement finance are available to cover the new lending.

quot (8) Priority means the right of a party to receive payment in preference to another party.

quot (b) the assignee has priority on grounds other than the provisions of this Convention .

quot (b) the assignee has priority on grounds other than the provisions of this Convention.

In States where this latter type of priority is permitted, insolvency courts recognize the risk to the existing secured creditors and authorize these types of priority reluctantly and as a last resort.

One is the priority payment of commercial debts before any other sources of capital are paid, i. e. before payments are made to other creditors or dividends are distributed to equity investors or project sponsors.

You really don't have the right priorities!

Law applicable to priority