A creditor protects her security interest in collateral against other creditors of the debtor and other third persons, including some buyers of the collateral, by perfecting the security interest.

Question

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Perfecting a security interest gives the creditor priority over other creditors and third parties in the collateral. It does not necessarily give protection against all buyers of the collateral, but it can limit the rights of subsequent buyers.

A Creditor Protects Her Security Interest in Collateral Against Other