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

Question

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Perfection of a security interest provides the secured creditor with priority over other creditors who claim an interest in the collateral. This means that if the debtor defaults, the secured creditor has the right to seize and sell the collateral to recover the debt before other creditors.

Perfection of a Security Interest Establishes the Right of a Secured