586 CHAPTER Twenty-Seven

586 CHAPTER Twenty-Seven

PRINCIPAL — This term is used to mean the employer of an agent; or the amount of money borrowed, or the amount of the loan. Also, one of the main parties in a real estate transaction, such as a buyer, borrower, seller, lessor. PRINCIPAL NOTE — The promissory note which is secured by the mortgage or trust deed. PRIOR LIEN — A lien which is senior or superior to others. PRIORITY OF LIEN — The order in which liens are given legal precedence or preference. PRIVATE MORTGAGE INSURANCE — Mortgage guaranty insurance available to conventional lenders on the first, high risk portion of a loan (PMI). PRIVITY — Mutual relationship to the same rights of property, contractual relationship.