Which of the following is true of priority of claims?
A)If two or more secured parties claim an interest in the same collateral but only one has perfected his or her security interest, the perfected security interest has priority.
B)Although one of the parties to claim an interest in the collateral has perfected his or her security interest, all the parties are given fair and equal priority.
C)If two or more secured parties claim an interest in the same collateral but neither has a perfected claim, they are given equal priority irrespective of attachments.
D)If two or more secured parties claim an interest in the same collateral but neither has a perfected claim, the first to claim has priority.

Question

Quizplus · Accepted Answer

The rule of priority of claims in Article 9 of the UCC gives priority to the secured party who has a perfected security interest over other secured parties who may also claim an interest in the same collateral but have not perfected their security interests. Therefore, if two or more secured parties claim an interest in the same collateral but only one has perfected their security interest, the perfected security interest has priority over the others.

Which of the Following Is True of Priority of Claims