Credit Corporation holds a perfected security interest in Dental Clinic's real property that includes priority to the proceeds from a sale of the collateral resulting from a bankruptcy. In relation to the bankruptcy trustee, this gives the secured party
A) equal rights.
B) superior rights.
C) no rights.
D) subordinate rights.

Question

Quizplus · Accepted Answer

Credit Corporation holds a perfected security interest in Dental Clinic's real property with priority to the proceeds from a sale of the collateral resulting from a bankruptcy. This means that in case of bankruptcy, Credit Corporation has superior rights over other creditors, including the bankruptcy trustee. Therefore, the correct answer is B, superior rights.

Credit Corporation Holds a Perfected Security Interest in Dental Clinic's