Yes, time commands are always executed first no matter where they are in the program, and have the lowest priority. The latter the statement in the program the higher its priority. The controller evaluates the statements for each timer several times per second, and if the state of the controlled device has changed a command is sent out.
The time commands should be thought of in a circular nature (i.e. they repeat everyday). So if your time statements where:
If Time > 00:05 Then LT1 ON
If Time > 04:00 Then LT1 OFF
If Time > 12:00 Then LT1 ON
If Time > 17:00 Then LT1 OFF
In this example LT1 would be on between 00:05->04:00, and 12:00->17:00, and off the rest of the time
Curt