Natural Resource Investment Company and Mega Bank are secured parties with security interests in property owned by LNG Gas Corporation. Between these interests, the first to be filed or perfected has priority over other filed or perfected security interests in
A) most circumstances.
B) no circumstances.
C) states that have not adopted Article 9 of the UCC.
D) states that require a security agreement to be signed and dated by the creditor.

Question

Natural Resource Investment Company and Mega Bank are secured parties with security interests in property owned by LNG Gas Corporation. Between these interests, the first to be filed or perfected has priority over other filed or perfected security interests in​
A) ​most circumstances.
B) ​no circumstances.
C) ​states that have not adopted Article 9 of the UCC.
D) ​states that require a security agreement to be signed and dated by the creditor.

Quizplus · Accepted Answer

The general rule under the Uniform Commercial Code (UCC) is that the first to file or perfect their security interest in the collateral has priority over later filings. This rule applies in most circumstances, except for a few exceptions such as purchase money security interests or statutory liens. States that have adopted Article 9 of the UCC follow this rule. The requirement for a signed and dated security agreement does not affect the priority of competing security interests.

Natural Resource Investment Company and Mega Bank Are Secured Parties