Meaning
Legal priority belongs to the party that first records their interest in a public register. The first-in-time registration rule dictates which creditor receives payment first when multiple parties hold a mortgage on the same piece of equipment or land. This principle reduces the risk for lenders by providing a clear chronological hierarchy for claims.
Registry Evidence
Official timestamps on the filing system determine the order of rights. Under the first-in-time registration rule, a later mortgage holder cannot claim priority even if their loan agreement was signed earlier than the registered one. The system at the Unified Social Credit Code platform or the Real Estate Registry acts as the definitive source.
Parties must perform a search before extending credit to ensure no existing filings take precedence.
Competing Priority
Conflict between different types of security interests follows the sequence of their entry into the public record. If two creditors both register their rights on the same day, they share the proceeds of any liquidation in proportion to their debt. The first-in-time registration rule applies regardless of whether the second creditor knew about the first one.
Perfection Effect
Validating a security interest against the claims of third parties depends entirely on this chronological recording.
