Only one creditor can have a perfected security interest in specific collateral at any given time.

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Multiple creditors can have a perfected security interest in specific collateral as long as they follow proper filing procedures and priority rules. Under the Uniform Commercial Code (UCC), the first creditor to file a valid and properly executed financing statement with the appropriate state office will have a priority over subsequent creditors. However, there are exceptions to this general rule, such as purchase money security interests (PMSIs) and consignments.

Only One Creditor Can Have a Perfected Security Interest in Specific