Perfection of a security interest is establishes the right of a secured creditor against other creditors who claim an interest in the collateral.

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Perfection of a security interest establishes priority over other creditors who claim an interest in the collateral. This means that if the debtor defaults on the loan, the secured creditor has first rights to the collateral, ahead of unsecured creditors.

Perfection of a Security Interest Is Establishes the Right of a Secured