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Asked by Valeria Martinez on Apr 27, 2024

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The basic priority rule for competing security interests is that the first secured party to attach wins.

Priority Rule

A principle that establishes the order in which claims or legal rights are to be enforced or satisfied.

Secured Party

An individual or entity that has an interest, usually a collateral interest, in the personal property of a debtor.

Attach

In legal terms, to seize a person's property to satisfy a court-ordered debt, or the process of becoming legally enforceable or applicable.

  • Grasp the concept of priority in security interests and the basic rules that determine which creditor has precedence.
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SA
Saken AbdykarimovApr 30, 2024
Final Answer :
False
Explanation :
The basic rule established by the Code is that when more than one security interest in the same collateral has been filed (or otherwise perfected),the first security interest to be filed (or perfected)has priority over any that is filed (or perfected)later [UCC 9-322(a) (1)].

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