Asked by
Mikayla Weiss
on Nov 28, 2024
Verified
Kiosk Jewelers borrows from Lender Inc. and Mortgage Company, using the same collateral. Only Mortgage Company has a perfected security interest. Kiosk defaults on both loans. The party with first rights to the collateral is
A) Kiosk Jewelers.
B) none of the choices.
C) Lender Inc.
D) Mortgage Company.
Perfected
In law, refers to a state where a security interest or lien secures payment or performance of an obligation to its fullest legal extent.
Security Interest
A legal claim or lien on collateral that secures the performance of an obligation, usually repayment of a debt.
Collateral
An asset offered to secure a loan or other credit and subject to seizure upon default.
- Understand the hierarchy of competing security interests concerning the same collateral.
Verified Answer
MJ
Learning Objectives
- Understand the hierarchy of competing security interests concerning the same collateral.
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