Pete borrows $5,000 from Willy in a secured transaction using Pete's BMW as collateral.Pete then borrows $7,000 from Janet using the same car as collateral.Neither Willy nor Janet perfects their security interests.Pete defaults on the loans.The party with priority is
A)Willy,because his interest was the first to attach.
B)Janet,because Pete owes her more money.
C)Janet,because her interest was the second to attach.
D)Willy,because Pete owes him less money.

Question

Quizplus · Accepted Answer

Willy has priority because his interest was the first to attach. In this case, neither Willy nor Janet perfected their security interests, so the first to attach has priority. It does not matter how much money Pete owes each lender or the order in which the loans were made.

Pete Borrows $5,000 from Willy in a Secured Transaction Using