Wedney, Inc. has a purchase money security interest in one of Yoro Chicken's meat processing machines. Wedney filed a financing statement on the day the machine was delivered, perfecting its interest. Great State Bank already had a security interest in the machine. Which party has superior priority rights in the meat processing machine?

Question

Frances Frazier

Social Studies

19 January, 16:32

Wedney, Inc. has a purchase money security interest in one of Yoro Chicken's meat processing machines. Wedney filed a financing statement on the day the machine was delivered, perfecting its interest. Great State Bank already had a security interest in the machine. Which party has superior priority rights in the meat processing machine?

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Answers (1)

Know the Answer?

Clara Yu · Answer 1

a)

Explanation:

Based on the information provided within the question it can be said that the in this scenario Wedney has superior priority rights in the meat processing machine. This is because (as the answer states) a PMSI in collateral other than inventory takes priority over conflicting security interest if the PMSI is perfected at the time the debtor receives the collateral or within 20 days after he receives it.