Final answer:
Mendez's security interest in Arabian Knight means Mendez has a legal claim on Arabian Knight's property to secure a debt. For that interest to be considered perfected, Mendez would need to file a UCC-1 statement or take possession of the collateral, among other methods. Without evidence of such actions, we can't conclude if Mendez's interest is perfected.
Step-by-step explanation:
The concept of security interest and perfection arises under the Article 9 of the Uniform Commercial Code (UCC), which deals with secured transactions in personal property. When Mendez has a security interest in Arabian Knight, it implies that Mendez has a legal claim or right over Arabian Knight's property, probably to secure a debt or an obligation that Arabian Knight owes Mendez. For a security interest to be considered perfected, certain steps must be taken beyond just the agreement or attachment of the security interest.
Perfection of a security interest is typically achieved by filing a financing statement (also known as a UCC-1 statement) with the appropriate government authority, often a Secretary of State or a similar public office. Alternatively, perfection can occur by taking possession of the collateral (if it is tangible), or by control (for certain types of collateral such as deposit accounts). Perfection serves to put the public on notice of the secured party's interest in the collateral and establishes priority over other parties that might have interest in the same collateral.
Therefore, if Mendez has merely established a security interest in Arabian Knight without taking the next steps to perfect that interest, Mendez's interest is not perfected. To ascertain whether Mendez's security interest is perfected, we would need to know if appropriate filings were made or if other statutory methods of perfection were followed. Without this information, we cannot conclusively determine the status of the perfection. However, if all necessary steps were taken according to the UCC, including timely filing and following any state-specific requirements, then Mendez's security interest in Arabian Knight would indeed be perfected.