A creditor who has the only secured interest in the debtor's collateral has priority over unsecured interests.

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This is known as the principle of secured priority, where secured creditors have priority over unsecured creditors in the distribution of assets in the event of liquidation or bankruptcy. The secured creditor's interest in the collateral serves as a form of security for the repayment of the debt, giving them a higher ranking in priority compared to unsecured creditors.

A Creditor Who Has the Only Secured Interest in the Debtor's