Final answer:
In secured transactions, priority between two perfected secured interests is generally determined by the 'first in time, first in right' rule, yet exceptions like a PMSI may override this general rule if certain conditions are met. Perfection methods and applicable laws can also influence priority.
Step-by-step explanation:
In the context of secured transactions, when two secured parties have both perfected their security interests in a collateral, the general rule for determining priority is: first in time, first in right. This means that the party who perfected their security interest first will have priority over other subsequently perfected interests.
However, there are exceptions to this rule, such as a purchase money security interest (PMSI) which can take priority over an earlier perfected security interest if it is perfected within a certain period after the debtor takes possession of the collateral.
It is also essential to know that perfection can be achieved in different ways such as by filing a financing statement, possessing the collateral, or by control. The specifics can vary based on the type of collateral and the applicable jurisdiction's laws. Thus, the exact priority may depend on the methods of perfection used and the timing of those methods.
In conclusion, determining priority between perfected security interests involves examining the dates of perfection and the methods used, as well as considering any priority rules specific to the type of interest or collateral.