First Finance Company perfected its security interest in Donald's auto on March 1.Second Finance Company perfected its security interest in the same auto on April 1.If both parties have properly filed their finance statements,First Finance Company has a priority interest in the auto.

Question

Quizplus · Accepted Answer

The first to perfect their security interest in a collateral generally has priority over subsequent creditors who perfect their interest later. In this case, First Finance Company perfected their interest in the auto on March 1, while Second Finance Company did it on April 1, so First Finance Company has priority.

First Finance Company Perfected Its Security Interest in Donald's Auto