Wedney,Inc.has a purchase money security interest in one of Yoro Chicken's meat processing machines.Wedney filed a financing statement on the day the machine was delivered,perfecting its interest.Great State Bank already had a security interest in the machine.Which party has superior priority rights in the meat processing machine?

Question

Quizplus · Accepted Answer

Wedney, Inc. has a purchase money security interest (PMSI) in the meat processing machine, which takes priority over a conflicting security interest held by Great State Bank because Wedney perfected its interest on the day the machine was delivered. A PMSI in collateral other than inventory takes priority over a conflicting security interest if the PMSI is perfected at the time the debtor receives the collateral or within 20 days after he receives it. Therefore, Wedney has superior priority rights in the meat processing machine.