The "First-In-Time" Rule Means That an Unperfected Security Interest Takes

question 5

True/False

The "first-in-time" rule means that an unperfected security interest takes priority over a perfected security interest.

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Definitions:

Constitution

The fundamental principles or established precedents according to which a state or other organization is governed.

Territory

An area of land under the jurisdiction of a ruler or state, often denoting non-state regions with a degree of autonomy.

State

A political entity with a defined territory, government, and the capacity to enter into relations with other states.

Northwest Territory

Territory established by the Northwest Ordinance of 1787, covering what would become the states of Ohio, Indiana, Illinois, Michigan, Wisconsin, and part of Minnesota.