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Trent Delivers His Prized, One of a Kind, Oil Painting

Question 32

Multiple Choice

Trent delivers his prized, one of a kind, oil painting of Frank Gotch, a famous wrestler from long ago, to Canon Bank as collateral for a loan, and Canon Bank hung the oil painting in its lobby. Shortly thereafter, Trent enters into another loan with Kenland Bank uses the same painting as collateral. Trent defaults on both loans at the same time. According to Article 9 of the UCC which entity has a perfected security interest?


A) Trent because he is the rightful owner of the painting.
B) Canon Bank in that the security interest was perfected by possession.
C) Kenland Bank because it is the most recent lender.
D) Canon Bank and Kenland Bank both have an equal perfected security interest.

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