Perfection of a security interest in collateral means that

Question

Quizplus · Accepted Answer

When a security interest is perfected by filing a financing statement, it generally ranks ahead of any interest perfected after the date of registration as well as unperfected security interests in the same collateral. Option A and D are not correct as there can be multiple security interests in the same collateral, and only unperfected interests are affected by perfection. Option B is incorrect as a perfected interest ranks ahead of all other interests, not just unperfected ones. Option E is incorrect as other creditors can obtain a perfected interest, but it would rank behind the previously perfected security interest.

Perfection of a Security Interest in Collateral Means That