Resource Investment Company and MegaBank are secured parties with security interests in property owned by LNG Gas Corporation. Between these security interests, the first to be filed or perfected has priority over other filed or perfected security interests in

Question

Resource Investment Company and MegaBank are secured parties with security interests in property owned by LNG Gas Corporation. Between these security interests, the first to be filed or perfected has priority over other filed or perfected security interests in​

Quizplus · Accepted Answer

The general rule under the Uniform Commercial Code (UCC) is that the first to file or perfect a security interest has priority over subsequently filed or perfected security interests in the same collateral. While there are limited exceptions to this rule, it applies in most circumstances. The priority of security interests is determined by the order in which they are filed or perfected, and not by whether the creditor signed and dated the security agreement or whether the state has adopted Article 9 of the UCC. Therefore, options B, C, and D are incorrect.

Resource Investment Company and MegaBank Are Secured Parties with Security