In the context of fixtures, who holds priority over lien creditors?

In the context of fixtures under secured transactions, the priority of claims is influenced by the specific filing requirements outlined in the Uniform Commercial Code (UCC). When a secured creditor makes a normal UCC filing, it generally establishes their interest in the collateral, which can include fixtures that are attached to real property.

The UCC provides that a secured creditor who properly files their security interest in fixtures has priority over lien creditors—those creditors who may have claims on the property through liens but who have not perfected their interests in those fixtures. A normal UCC filing serves to 'perfect' the secured creditor's interest, providing them with a superior claim in the event of a default or bankruptcy.

If no fixture filing has been made by the secured party, their interest may be subordinate to lien creditors, particularly if those creditors can claim a priority interest in the real property where the fixtures are located. Therefore, the key aspect of priority in this context is the act of proper filing. Thus, when a secured creditor makes a normal UCC filing, they gain priority over lien creditors regarding the fixtures, ensuring that their claims take precedence in the event of enforcement actions.