Practice question
Creditor A creates a security interest first but does not perfect it until after Creditor B properly registers a notice and satisfies the applicable creation and perfection requirements for the same ordinary collateral. No special priority rule applies. A argues that creation date alone necessarily wins. Which is correct?
- Section 17 generally uses registration or other perfection timing rather than creation order; the special-rule premise must be respected
- Creation date always defeats every later registration
- A creditor’s personal preference determines priority
- All competing interests automatically cancel each other
- Only the debtor’s age controls
Legal references
- RA 11057, Section 17: https://lawphil.net/statutes/repacts/ra2018/ra_11057_2018.html
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