Which of the Following Is True Regarding Priority in a Dispute

question 3

Multiple Choice

Which of the following is true regarding priority in a dispute involving a purchase-money security interest in business goods other than inventory?

• A) The purchase-money security interest has priority over any other secured perfected interests as long as the purchase-money security interest is perfected within 20 days of the debtor's possession of the collateral.
• B) The purchase-money security interest has priority over any other secured perfected interests as long as the purchase-money security interest is perfected within 30 days of the debtor's possession of the collateral.
• C) The purchase-money security interest has priority over any other secured perfected interests as long as the purchase-money security interest is perfected within 40 days of the debtor's possession of the collateral.
• D) The purchase-money security interest has priority over any other secured perfected interests as long as the purchase-money security interest is perfected within 45 days of the debtor's possession of the collateral.
• E) The purchase-money security interest has priority over any other secured perfected interests as long as the purchase-money security interest is perfected within 60 days of the debtor's possession of the collateral.

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Definitions:

Ask Price

The price at which a seller is willing to sell a security or asset.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy an asset at a specified price within a specified time.

Specific Stock

A particular share or security representing ownership in a company.

Specific Price

A precise cost or valuation assigned to a particular item, service, or financial instrument.