Peter borrows $5,000 from Willy in a secured transaction using Peter's sports car as collateral.Peter then borrows $7,000 from Jane using the same sports car as collateral.Neither Willy nor Jane perfects their security interests.Peter defaults on the loans.The party with priority is

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Quizplus · Accepted Answer

Willy has priority because his security interest attached first, regardless of the amount owed. As neither Willy nor Jane perfected their security interests, the general rule of first-to-file or first-to-attach applies.

Peter Borrows $5,000 from Willy in a Secured Transaction Using