Which term describes a security interest that has been filed to provide priority over others?

• A. Pledge
• B. Security interest
• C. Perfected security interest
• D. Constructive notice

Answer: (C)

In secured transactions, priority among creditors is determined by perfection. When a security interest is perfected—typically by filing a financing statement or by taking possession/control as allowed—it gains priority over other claims against the same collateral that are unperfected or come later, with certain exceptions like purchase money security interests. The term that describes a security interest that has been filed to provide priority over others is a perfected security interest. Filing also creates constructive notice to third parties, reinforcing that priority. A mere security interest is enforceable against the debtor, but it isn’t guaranteed to have priority until it’s perfected.