Answered
If both First Bank and Second Bank had properly perfected their security interest, which creditor's interest would take priority?
A) First Bank, because in a dispute between a secured perfected creditor and a secured unperfected creditor, the secured perfected creditor takes priority.
B) First Bank, because in a dispute between two secured and perfected creditors, the party who perfected first takes priority.
C) First Bank, because in a dispute between two secured but unperfected creditors, the party who attached first takes priority.
D) The two banks will have equal rights to the property.
E) Second Bank, because "after-acquired property" is not specific enough to grant attachment right to First Bank, and, thus, the secured agreement of Second Bank takes priority.
On Jul 14, 2024