What happens when an applications attempts to access a password-protected file?

When an application attempts to access a password-protected file in a Vault, CBFS Vault tries to obtain the password using the following steps:

1. If the file is accessed via a CBFS Vault API, and any password is provided directly, then that password is used (and the access will fail if it is incorrect). If a password is not provided directly, then the steps below apply.
2. If the file's password has been cached for one-time use using the CacheFilePassword method, then that password is used.
3. Otherwise, if the DefaultFileAccessPassword property is set, and contains the correct password for the file in question, then that password is used.
4. Otherwise, the FilePasswordNeeded event fires, giving your application a chance to supply the correct password dynamically (or not, if you wish to deny the access attempt).