Which of the following corresponds to the priority rule for purchase money security interests in inventory?
A)The PMSI has priority if it is perfected at the time the debtor receives possession of the inventory.
B)The PMSI has priority if it is perfected within 20 days after the debtor receives possession of the inventory.
C)The PMSI has priority if the holder of the competing security interest received notification within three years before the debtor receives the inventory.
D)The PMSI has priority when it has been filed or perfected before the other interest on the same collateral.

Question

Quizplus · Accepted Answer

One of the requirements for a perfected purchase money security interest in inventory to have priority over a conflicting security interest in the same inventory is that it is perfected at the time the debtor receives possession of the inventory.

Which of the Following Corresponds to the Priority Rule for Purchase