Darrel,Smith,Keith and Aaron are claimants to a collateral interest.All four have secured their interests on the collateral.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?

Question

Quizplus · Accepted Answer

Aaron would have the highest priority of claim to the collateral because taking physical possession of the collateral generally gives a party priority over those who have merely filed a financing statement or have a security interest but have not taken possession.

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