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If a Security Interest Is Perfected but Thereafter Becomes Commingled

Question 9

Multiple Choice

If a security interest is perfected but thereafter becomes commingled with other goods that also have perfected security interest ultimately resulting in a product or mass and loss of identity,how does the security interest rank?


A) equally according to the ration that the cost of goods to which interest originally attached bears to the cost of the total product or mass
B) first in time
C) first to be chosen
D) there is no ranking of the security interest and a loss results
E) None of these are correct.

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