Olive Borrows from Polo and Quennell,using the Same Collateral for Both

question 17

Multiple Choice

Olive borrows from Polo and Quennell,using the same collateral for both loans.Only Quennell has a perfected security interest.Olive defaults on both loans.The party with first rights to the collateral is

• A)Olive.
• B)Polo and Quennell,in proportion to Olive's debt to each.
• C)Polo.
• D)Quennell.

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Definitions:

Indifferent

A state of having no preference or being neutral between two or more options as they provide the same level of utility or satisfaction.

Prizes

Awards or rewards given for a specific achievement, often used as incentives in competitions or contests.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount loaned, paid to the lender at regular intervals for the use of their money.

Bond Prices

The market value of a bond, which can fluctuate based on interest rates, the bond’s credit quality, and other factors.