A Purchase Money Security Interest in Noninventory Collateral Prevails Over

question 26

Multiple Choice

A purchase money security interest in noninventory collateral prevails over a prior perfected security interest if the:

• A) purchase money security interest is perfected at the time the debtor takes possession or within 20 days afterward.
• B) notification states that the person expects to acquire a purchase money security interest in inventory of the debtor and describes the inventory.
• C) holder of the competing security interest received notification within five years before the debtor receives the inventory.
• D) purchase money secured party gives notification in writing to the prior secured creditor before the debtor receives the inventory.