Priority

Question 0

Exceptions to GR:

PM SC

Answer 0

PM SC gets to cut the line in front of a prior perfected security creditor (PC) (super priority) if and only if:

1 - PM SI CG (excl. titled cars)
2 - Non inventory collateral: if perfected when D receives pzn of goods or w/n 20 days thereafter
3 - Inventory collateral: if perfected when D receives pzn of inventory AND notice to holder of conflicting perfected SI w/n 5 years before the D receives pzn of the collateral

Question 1

General priority rules

Answer 1

• First to file or perfect
  [ btw 2 perfected Cs, first to file FS gets first bite]
  -PC takes before SC
  -PC takes before LC
  -LC takes before SC
• Among SCs, 1st to attach wins
• buyer in GF of tangible chattel paper, tangible docs, good, instruments, or certificated securities, takes free of unperfected SI
• Buyer in ordinary course of business takes free of PSI

Question 2

Between two PMSCs

Answer 2

• if 2 PMSCs qualify for priority under 9-324, a seller PMSCS takes before a lender PMSCS (vendor beats lender)
• if both PMSCs in like position, first to file or perfect rule applies

Question 3

Order

Answer 3

SP PMSC
PC
LC
SC
UC
         [B]