Mark filed a financing statement on Daniel's collateral on March 2.However,attachment of this interest did not occur until March 4.Meanwhile,Charles,who had attached a security interest on the same collateral on March 1,filed a financing statement on March 3.Which interest has priority and why?
A)Mark's interest has priority because he filed the security interest before Charles did.
B)Charles' interest has priority because he attached the security interest first.
C)Mark's interest has priority because his attaching was the latest.
D)Charles' interest has priority because his filing was the latest.

Question

Mark filed a financing statement on Daniel's collateral on March 2.However,attachment of this interest did not occur until March 4.Meanwhile,Charles,who had attached a security interest on the same collateral on March 1,filed a financing statement on March 3.Which interest has priority and why?
A)Mark's interest has priority because he filed the security interest before Charles did.
B)Charles' interest has priority because he attached the security interest first.
C)Mark's interest has priority because his attaching was the latest.
D)Charles' interest has priority because his filing was the latest.

Quizplus · Accepted Answer

The basic rule established by the Code is that when more than one security interest in the same collateral has been filed (or otherwise perfected),the first security interest to be filed (or perfected)has priority over any that is filed (or perfected)later [UCC 9-322(a) (1)].However,if none of the conflicting security interests has been perfected,then the first security interest to be attached to the collateral has priority [UCC 9-322(a) (3)].

Mark Filed a Financing Statement on Daniel's Collateral on March