When There Are Two Perfected Secured Creditors in the Same

question 21

Multiple Choice

When there are two perfected secured creditors in the same collateral: ______.

• A) priority goes to the creditor who perfected first.
• B) priority goes to the creditor who is owed the greatest amount of money.
• C) each perfected secured creditor has a 50% interest in the collateral.
• D) both perfected secured creditors are treated like unsecured creditors in regards to the collateral.

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Definitions:

Unanimous Vote

A vote in which all members of a decision-making body agree and there are no dissenting opinions.

Winding Up

The process of settling the accounts and liquidating the assets of a company for the purpose of distributing the proceeds to claimants and shutting down the company permanently.

Implied Authority

The power of an agent to perform acts that are reasonably necessary to accomplish the purpose of an agency, even if not explicitly authorized.

Dissolution

The process of formally closing or ending an entity, such as a business, partnership, or marriage, through legal means.