What is the role of a financing statement in a consignment if the consignor files it?

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A financing statement, when filed by the consignor, primarily serves to perfect a security interest in the goods consigned. This means it gives notice to third parties, particularly the seller's (consignor's) creditors, that the consignor has a security interest in the consigned goods. This is crucial for establishing priority in case of the consignor's bankruptcy or in situations where multiple parties claim an interest in the goods.

What Is the Role of a Financing Statement in a Consignment