If a Purchase Money Security Interest (PMSI)is in Inventory,the Perfected

question 117

Multiple Choice

If a purchase money security interest (PMSI) is in inventory,the perfected PMSI has priority over a previously perfected non-PMSI if which of the following two conditions are met?

• A)The PMSI party perfects its interest after the debtor receives his inventory,and the PMSI party checks for previous secured interests and gives written notice to the holders of the PMSI.
• B)The PMSI party perfects its interest before or at the same time that the debtor receives his inventory,and the PMSI party checks for previous secured interests and gives written notice to the holders of the PMSI.
• C)The PMSI party perfects its interest before or after the debtor receives his inventory,and the PMSI party checks for previous secured interests and gives written notice to the holders of the PMSI.
• D)The PMSI party perfects its interest before or at the same time that the debtor receives his inventory,and the PMSI party checks for subsequent secured interests and gives written notice to the holders of the PMSI.
• E)The PMSI party perfects its interest before or at the same time that the debtor receives his inventory,and the PMSI party checks for subsequent secured interests and gives written or oral notice to the holders of the PMSI.

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Definitions:

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