Which of the Following Corresponds to the Priority Rule for Purchase

question 6

Multiple Choice

Which of the following corresponds to the priority rule for purchase money security interest in inventory?

• A) The PMSI has priority if it is perfected at the time the debtor receives possession of the inventory.
• B) The PMSI has priority if it is perfected within 20 days after the debtor receives possession of the inventory.
• C) The PMSI has priority if the holder of the competing security interest received notification within three years before the debtor receives the inventory.
• D) The PMSI has priority when it has been filed or perfected before the other interest on the same collateral.

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Definitions:

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