The principle of 'first in time, first in right' is the system many states use to determine lien priority, indicating that the earliest recorded lien typically has the highest priority. Other options presented do not accurately describe how lien priority works. Understanding this concept is essential for recognizing the order of claims against a debtor's property. ;
The system many states use to determine lien priority is 'first in time, first in right', meaning the first recorded lien has the highest priority. Other options like government payments coming last or the size of the lien being the determining factor are incorrect. Therefore, the correct answer is A. First in time, first in right.
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