More than one creditor can have a perfected security interest in the same collateral.

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It is possible for multiple creditors to have a perfected security interest in the same collateral. This often occurs in situations where the debtor uses the same asset as collateral for multiple loans or lines of credit. In such cases, each creditor will typically have a security agreement and may file a UCC-1 financing statement to perfect their interest in the collateral. In the event of default by the debtor, each creditor will have a right to claim a portion of the proceeds from the sale of the collateral based on their priority and the terms of their respective security agreements.

More Than One Creditor Can Have a Perfected Security Interest