Lena borrows from mac and nicol, using the same collateral for both loans. only nicol has a perfected security interest. lena defaults on both loans. the party with first rights to the collateral is

Obviously, Nicol has the right to the collateral because of her claim of the perfected security interest. This type of legal claim is based on a collateral that has been gained through a defaulted loan. When the borrower, who in this case was Lena, fails to fulfill the duties of completing his/her payments for the loan, the lender (Nicol) has the right to sell the collateral to regain the unpaid loan balance of the borrower.