Why Is It Important for a Creditor to Perfect a Secured

question 6

Multiple Choice

Why is it important for a creditor to perfect a secured interest if there is the potential that a lien will subsequently be placed on the same property?

• A) Because otherwise the creditor will not be able to make a claim if the lien holder makes a claim.
• B) Because otherwise the creditor has to split the proceeds of property with the lien holder.
• C) Because the lien creditor will completely take over the secured interest.
• D) Because the secured interest will be lost if a lien is placed on the property.
• E) Because a lien creditor will have priority over an unsecured interest.

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