A is an unsecured creditor in a car loan agreement dated January 1, 2020. B is a secured creditor in an unregistered chattel mortgage dated January 2, 2020.
C is a secured creditor in a registered chattel mortgage dated January 3, 2020 and registered on January 13, 2020.
D is a secured creditor in a registered chattel mortgage dated January 4, 2020 and registered on January 12, 2020.
E is a secured creditor in a registered chattel mortgage dated and registered on January 5, 2020.
Which of the following creditors has the highest priority?

Question

Quizplus · Accepted Answer

E has the highest priority because their chattel mortgage was both dated and registered earliest among the secured creditors. Registration of the chattel mortgage is crucial for establishing priority over other secured interests in the same collateral.

A Is an Unsecured Creditor in a Car Loan Agreement