The First Shall Be Last: A Contextual Argument for Abandoning Temporal Rules of Lien Priority
39 Pages Posted: 25 Jul 2004
Abstract
This paper is an empirical and analytical investigation of priority in construction lending. It rests on a substantial set of interviews with construction lenders and borrowers. Generally, it argues that construction lenders are better placed than mechanic's lien claimants to implement procedures that limit the risk of borrower defalcation. Accordingly, it recommends a reversal of the ordinary rule of priority, which permits construction lenders to have priority over mechanic's lien claimants. A reversal of the rule of priority will more effectively police borrower defalcation.
Keywords: lending, lien
JEL Classification: D23, K11
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
By Katja Funken
-
Lurking in the Shadow: The Unseen Hand of Doctrine in Dispute Resolution
-
Court-Connected Mediation in General Civil Cases: What We Know from Empirical Research
-
Empirical Scholarship in Contract Law: Possibilities and Pitfalls
-
Cooperation in Transactions and Disputes: A Problem-Solving Legal System?