Mark filed a financing statement on Daniel's collateral on March 2.However,attachment of this interest did not occur until March 4.Meanwhile,Charles,who had attached a security interest on the same collateral on March 1,filed a financing statement on March 3.Which interest has priority and why?

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The basic rule established by the Code is that when more than one security interest in the same collateral has been filed (or otherwise perfected),the first security interest to be filed (or perfected)has priority over any that is filed (or perfected)later [UCC 9-322(a)(1)].However,if none of the conflicting security interests has been perfected,then the first security interest to be attached to the collateral has priority [UCC 9-322(a)(3)].

Mark Filed a Financing Statement on Daniel's Collateral on March