Which of the following is true of the priority of claims?
A) If two or more secured parties claim an interest in the same collateral but only one has perfected his or her security interest, the perfected security interest has priority.
B) Although one of the parties to claim an interest in the collateral has perfected his or her security interest, all the parties are given fair and equal priority.
C) If two or more secured parties claim an interest in the same collateral but neither has a perfected claim, they are given equal priority irrespective of attachments.
D) If two or more secured parties claim an interest in the same collateral but neither has a perfected claim, the first to claim has priority.

Question

Quizplus · Accepted Answer

When multiple secured parties claim an interest in the same collateral, the priority of claims is determined by the order of perfection. If one secured party has perfected their security interest and the others have not, the perfected security interest has priority over the others.

Which of the Following Is True of the Priority of Claims