If a Security Interest Is Perfected but Thereafter Becomes Commingled

question 9

Multiple Choice

If a security interest is perfected but thereafter becomes commingled with other goods that also have perfected security interest ultimately resulting in a product or mass and loss of identity,how does the security interest rank?

• A) equally according to the ration that the cost of goods to which interest originally attached bears to the cost of the total product or mass
• B) first in time
• C) first to be chosen
• D) there is no ranking of the security interest and a loss results
• E) None of these are correct.

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