Correct answer: C
Explanation:There are only three different ways to perfect: by possession, by filing and perfection by attachment. Possession will not only create the security agreement required for attachment, but will also result in perfection. Thus when attachment is by possession, attachment and possession occur simultaneously. Note that they would also occur simultaneously when perfection by attachment occurs.
The remaining answer choices are incorrect for the following reasons:
• Perfection will not occur merely because the security agreement so provides. You must perfect by one of the three methods.
• No possession or filing occurred and perfection by attachment requires a PMSI creditor in consumer goods, not a PMSI creditor in inventory. Thus, no perfection occurred.
• No possession, filing or perfection by attachment occurred and therefore there is no perfection.
Andrew Lee, CPA