Darrel, Smith, Keith and Aaron are claimants to a collateral interest. All four have secured their interests on the collateral. Aaron takes physical possession of the collateral. Keith files a financing statement some time later. Who among the four would have highest priority of claim to the collateral?

The correct answer is letter "D": Aaron.

Explanation:

In front of company bankruptcy, stakeholders can file claims to try to recover part of their investments. Under such scenarios, investors who had taken possession of physical assets have the priority moreover when they have documents explaining why they had already taken over those properties which could be furniture, tools, or vehicles. Unsecured claims will have lower priority in the recovery process.

an online clothing brand

explanation: