Assuming a Purchase-Money Security Interest Is Not Involved,which of the Following

question 47

Multiple Choice

Assuming a purchase-money security interest is not involved,which of the following is true regarding priority when there are two secured parties and neither has perfected?

• A) The party who attached its interest first will prevail.
• B) The party who loaned money first will prevail.
• C) The parties will divide the proceeds from the sale of the collateral evenly between them.
• D) The party who loaned the most money on the collateral has priority.
• E) The party who first notified the debtor of a missed payment has priority.

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Definitions:

Response Paired

A concept in conditioning where a specific stimulus is repeatedly and consistently followed by a particular response.

Extinction

In psychology, the diminishing of a conditioned response, typically when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Repeated Pairings

A concept from behavioral psychology where repeated association of two stimuli results in the learning or conditioning of a response.

Prior Linking

The process of establishing a connection or association between concepts or items in memory before they are encountered again, facilitating recall or recognition.