Kris borrows from Lender Inc. and Mortgage Company, using the same collateral for both loans. Mortgage Company perfects the security interest but Lender does not. Kris defaults on both loans. The party with first rights to the collateral is
A) Kris.
B) none of the choices.
C) Lender Inc.
D) Mortgage Company.

Question

Quizplus · Accepted Answer

Mortgage Company has perfected its security interest, giving it priority over Lender Inc., which has not perfected its interest.

Kris Borrows from Lender Inc