Olive borrows from Polo and Quennell,using the same collateral for both loans.Only Quennell has a perfected security interest.Olive defaults on both loans.The party with first rights to the collateral is
A)Olive.
B)Polo and Quennell,in proportion to Olive's debt to each.
C)Polo.
D)Quennell.

Question

Quizplus · Accepted Answer

Quennell has a perfected security interest, which means they have the first rights to the collateral. Therefore, in the event of default, Quennell has priority over Polo and Olive.

Olive Borrows from Polo and Quennell,using the Same Collateral for Both