When more than one party claims an interest in the same collateral,a perfected secured party's interest has priority over the interests of most other parties.

Question

Quizplus · Accepted Answer

This is the basic principle of the priority rules in secured transactions. A perfected secured party has priority over other parties who claim an interest in the same collateral, except for a few limited exceptions such as certain types of statutory liens and purchase money security interests.

When More Than One Party Claims an Interest in the Same