Peach Auto Sales, LLC (Peach) has a secured loan on its inventory through Southshore Credit Union (Southshore), which Southshore filed in February. In March, Peach has another secured loan on its inventory from GMAC credit. GMAC files its security interest in May. Which creditor will have priority in the event of a default by Peach? Neither will have priority, and both will share equal revenue from the sale of inventory Southshore will have priority, and it will have its debt satisfied prior to GMAC receiving funds Since GMAC came last, it will have priority under the "last in, first out" (LIFO) principle, and will accordingly have its debt satisfied before Southshore Since there is an irredeemable conflict regarding priority of their respective security interests, neither Southshore nor GMAC will be capable of enforcing its security interest, and both creditors must attempt to recover the debt owed as an unsecured loan.

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