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Scott Perfected a Security Interest Against Jaimie for a Loan

Question 28

Multiple Choice

Scott perfected a security interest against Jaimie for a loan that she offered her car as collateral. Shortly thereafter, Jaimie declared bankruptcy. Which statement below is correct?


A) The bankruptcy proceedings always has a superior claim to any property.
B) All creditors will take a portion of the property in proportion to the amount of debt owed to each lender.
C) Scott will have a superior interest since he perfected the security interest in the car.
D) Once the proceeds from the bankruptcy are used to satisfy existing debt, Scott will then have a claim to the remaining proceeds.

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