A typewriter,which was subject to a prior UCC security interest,was delivered to Ed Fogel for repair.Fogel,who is engaged in the business of repairing typewriters,repaired the typewriter.However,the owner of the typewriter now refuses to pay for the services performed by Fogel.The state in which Fogel operates his business has a statute,which gives Fogel a mechanic's lien on the typewriter.Fogel's mechanic's lien:

A) takes priority over a prior perfected security interest under all circumstances.
B) is subject to a prior perfected purchase money security interest under all circumstances.
C) is subject to a prior unperfected security interest where the statute is silent as to priority.
D) takes priority over a prior perfected security interest unless the statute expressly provides otherwise.

Question

Maria Antonette · Accepted Answer

Final Answer : D, Explanation :  The Code provides that certain liens arising by operation of law (such as an artisan's lien)have priority over a perfected security interest in the collateral [UCC 9-333].

Definitions

Learning Objectives

Learning Objectives

Related questions