When there are two perfected secured creditors in the same collateral: ______.
A) priority goes to the creditor who perfected first.
B) priority goes to the creditor who is owed the greatest amount of money.
C) each perfected secured creditor has a 50% interest in the collateral.
D) both perfected secured creditors are treated like unsecured creditors in regards to the collateral.

Question

Quizplus · Accepted Answer

When there are two perfected secured creditors in the same collateral, priority goes to the creditor who perfected first. This means that the creditor who filed their security interest with the appropriate authorities first will have priority over the collateral in the case of default or bankruptcy.

When There Are Two Perfected Secured Creditors in the Same