Kiosk Jewelers borrows from Lender Inc. and Mortgage Company, using the same collateral. Only Mortgage Company has a perfected security interest. Kiosk defaults on both loans. The party with first rights to the collateral is

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Mortgage Company has first rights to the collateral because it has a perfected security interest. Perfection of a security interest generally gives the creditor priority over other creditors who have an interest in the same collateral.

Kiosk Jewelers Borrows from Lender Inc