Priority

Question 1

PMSI v. lien creditor

Answer 1

If secured party files PMSI within 20 days after debtor receives possession of collateral, PMSI prevails over lien creditor whose lien attaches b/w PMSI’s attachment and filing

Question 2

Unperfected secured party v. lien creditor

Answer 2

Lien creditor, but if secured creditor has PMSI, gets priority if files within 20 days after debtor receives collateral

Question 3

Buyer in ordinary course vs. lien creditor

Answer 3

Buyer in ordinary course if no knowledge that sale violates rights of another person, unless buyer buys farm products from someone engaged in farming operations

Question 4

Future advance by secured creditor v. lien creditor

Answer 4

Future advance has priority if 1) made without knowledge of lien or 2) pursuant to commitment entered w/o knowledge of lien

Question 5

Buyer not in ordinary course v. unperfected security interest

Answer 5

Buyer prevails if no knowledge of security interest

Question 6

PMSI in investment property v. PMSI in investment property

Answer 6

If one is perfected by control and other wasn’t, that has priority. If both obtained by control, rank by first to obtain control. Security interest granted by debtor’s intermediary has priority over security interest granted by debtor to another secured party. Otherwise, first to file/perfect.

Question 7

Unperfected secured interest v. debtor

Answer 7

Security interest

Question 8

PMSI v. PMSI

Answer 8

Seller-financed prevails over financer-financed. If both are same, then first to file or perfect prevails.

Question 9

Secured party v. statutory lien claimants

Answer 9

Statutory lien always prevails

Question 10

Purchaser of instrument v. other perfected security interest in instrument

Answer 10

Purchaser prevails if gives value, takes possession in good faith, and no knowledge that purchase violates rights of secured party

Question 11

Unperfected secured party v. unperfected secured party

Answer 11

First to attach

Question 12

Perfected secured creditor v. perfected secured creditor

Answer 12

First to file or perfect wins

Question 13

Lien creditor v. HDC

Answer 13

HDC

Question 14

Perfected security interest in deposit account v. perfected security interest in deposit account

Answer 14

Perfected by control prevails over perfected by proceeds. Order of priority of control method: putting account in own name, bank maintaining account, authenticated record

Question 15

Non-PMSI perfected secured creditor v. lien creditor

Answer 15

First to perfect security interest or first to attach lien (i.e. time of sheriff’s levy) wins

Question 16

Buyer not in ordinary course v. perfected security interest

Answer 16

Perfected security interest prevails