Priority - Who Wins

Question 1

General Rule

Answer 1

First to file wins - EXCEPT control over investment property or possession of notes or chattel paper

Question 2

Lien Creditors

Answer 2

If secured interest is perfected first, then it wins. If lien arises first, it wins

Question 3

Fixtures

Answer 3

Wins over lien creditors

Question 4

Buyers in Ordinary Course

Answer 4

Inventory sold in ordinary course of debtor’s biz is generally not subject to the secured interest (like me buying a car from a dealer). ALSO, buyers who buy b4 perfection win over secured creditors

Question 5

PMSI Exceptions

Answer 5

Non-Inventory - if perfected w/in 20-days of debtor’s receipt of collateral, then PRIORITY
Inventory - To get super-priority, must do two things before delivery to debtor: 1) perfect PMSI; and 2) notify other secured creditors of existing and after-acquired collateral that PMSI creditor expects to have priority