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On January 1 , Yuka purchases a pickup truck in Arizona and the car dealership properly perfects its security interest in the truck. On February
On January Yuka purchases a pickup truck in Arizona and the car dealership properly perfects its security interest in the truck. On February Yuka moves to Colorado and takes out a loan with Rocky Bank to start an internet business, using the truck as collateral. Rocky Bank properly perfects its security interest in the truck. Yuka never opens her business, stops making payments on the truck, and leaves town on December Which creditor's security interest has priority?
Rocky Bank, because even if the dealership had perfected its security interest in Colorado within four months of when the truck was brought into the state, the bank would have priority over a car dealership.
The dealership, because it properly perfected its security interest before Rocky Bank.
Rocky Bank, because, although the dealership properly perfected its security interest before Rocky Bank, the dealership failed to reperfect its interest in the new state.
The dealership, because even though it did not reperfect its interest in Colorado, a secured party does not lose protection if the initial perfection was proper.
The dealership, because it properly perfected its security interest, which automatically perfected when Yuka moved to Colorado.
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