Who has priority under UCC Article 9 when multiple secured interests exist?

Who has priority under UCC Article 9 when multiple secured interests exist?

• A. Most recently filed
• B. Last to file
• C. First to file
• D. First to use

Answer: (C)

Under UCC Article 9, priority among secured interests is based on when perfection occurs. A security interest is perfected by filing a financing statement (or by possession/control in applicable cases). If more than one party has perfected interests in the same collateral, the one whose perfection occurred first has priority. Therefore, the early filer (the first to file or otherwise perfect) takes priority. The other options describe later filing or irrelevant timing, so they don’t determine priority. In short, the earliest perfected security interest wins.

Under UCC Article 9, priority among secured interests is based on when perfection occurs. A security interest is perfected by filing a financing statement (or by possession/control in applicable cases). If more than one party has perfected interests in the same collateral, the one whose perfection occurred first has priority. Therefore, the early filer (the first to file or otherwise perfect) takes priority. The other options describe later filing or irrelevant timing, so they don’t determine priority. In short, the earliest perfected security interest wins.