D is corrent because even perfection will not protect a secured party when a purchaser buys goods in the ordinary course of business from a seller who deals in goods of that kind. The purchaser will take free of any existing security interest (perfected or unperfected) even if the buyer knows of the secured party’s security interest at the time of the sale. Therefore, a buyer in the ordinary course of the debtor’s business will be unaffected by a prior perfected security interest.
A is incorrect because a judgment creditor will have a subordinate claim to a prior perfected security interest. Thus, perfection protects the secured party against the claims of the judgment creditor.
B is incorrect because other creditors whether secured or unsecured will be affected by a prior perfected security interest.
C is incorrect because a trustee in bankruptcy will have a subordinate claim to a prior perfected security interest.
|
