Conflicts

Question 1

Unperfected security interest vs. unperfected security interest

Answer 1

Priority goes to first SI to attach

Question 2

Perfected security vs. unperfected security interest

Answer 2

priority goes to perfected security interest

Question 3

perfected security interest vs. perfected security interest

Answer 3

priority goes to first to file or perfect

Question 4

Lien creditor vs secured party

Answer 4

SP has priority over lien creditor if secured party:
-perfects before the lien creditor’s interest arises
-files a financing statement and evidences a security agreement by authentication, possession or control before the lien creditor’s interest arises

Question 5

PMSI vs. Lien creditors

Answer 5

PMSI takes priority over an intervening lien creditor if PMSI is perfected within 20 days of when debtor receives the collateral

Question 6

When does “first in time, first in right” apply to fixtures?

Answer 6

Applicable if the secured party with the security interest in the fixture files a fixture filing

Question 7

Mortgagee vs. SP in fixtures

Answer 7

First-in-time, first in right governs if the SP filed a fixture filing

Mortgagee will have priority if recorded before the secured party filed a fixture filing

Question 8

When will a PMSI have “super-priority” in a fixture?

Answer 8

A PMIS will have second-in-time, first-in-right priority if the security interest is perfected by a fixture filing:
1. before becoming fixtures
2. within 20 days of the goods becoming fixtures