The party that perfects its interest in collateral has first claim, when two parties have an interest in the same collateral.

Collateral

The property that is subject to a secured interest.

Perfection

In finance and law, the process of securing a security interest in collateral through legal documentation and registration.

First Claim

The priority right to make a demand or assert a right before others; often used in financial contexts, such as creditors having first claim on assets.