Lending Corporation holds a perfected security interest in Medical Clinic's real property that includes priority to the proceeds from a sale of the collateral resulting from a bankruptcy. In relation to the bankruptcy trustee, this gives the secured party
A)equal rights.
B)superior rights.
C)no rights.
D)subordinate rights.

Question

Quizplus · Accepted Answer

Lending Corporation's perfected security interest in Medical Clinic's real property, including priority to the proceeds from a sale of the collateral in bankruptcy, gives the secured party superior rights over the bankruptcy trustee. This is because a perfected security interest generally has priority over claims by unsecured creditors, including the bankruptcy trustee, in bankruptcy proceedings.

Lending Corporation Holds a Perfected Security Interest in Medical Clinic's