Darrel, Smith, Keith and Aaron are claimants to a collateral interest.Smith and Darrel secure their interest.Aaron takes physical possession of the collateral.Keith files a financing statement some time later.Who among the four would have highest priority of claim to the collateral?
A)Darrel
B)Smith
C)Keith
D)Aaron

Question

Quizplus · Accepted Answer

Aaron has the highest priority because he took physical possession of the collateral, which generally gives him priority over others who have not perfected their interest by possession.

Darrel, Smith, Keith and Aaron Are Claimants to a Collateral