Orlando Bank filed a UCC-1 financing statement on March 22^nd for a car, valued at $45,000, that Donald offered as collateral on a $1000.00 loan. Donald also offered the same car as collateral to Kissimmee Bank for a $5000.00 loan. Kissimmee bank filed a UCC-1 financing statement on March 24. Donald ended up defaulting on both loans. Which statement below is correct?

Multiple Choice

• Orlando bank will receive all the proceeds from the sale of the car because Orlando bank perfected its security interests first.

• Orlando bank will receive the amount of the outstanding loan and the remaining proceeds will revert to Donald.

• Orlando bank will have priority in the security to cover the cost of the loan and the remainder will go to Kissimmee as second in priority of a perfected security interest.

• Kissimmee Bank will receive all the proceeds from the sale of the car because it loaned Donald the largest amount.

Answer rating: 100% (QA)

A security interest is an interest in personalbusiness property to secure the performance o... View the full answer