What consequence may a secured party face for failing to comply with the UCC?

A secured party that fails to comply with the Uniform Commercial Code (UCC) may indeed face the consequence of losing priority in security interests. The UCC outlines specific rules and procedures for perfecting security interests, such as filing financing statements. If a secured party does not adhere to these requirements, they risk their claim being subordinate to creditors who have perfected their security interests according to UCC provisions.

When a secured party's interest is not properly perfected, it can be vulnerable to claims by other creditors, including those who obtain a judicial lien or other secured parties whose interests were perfected first. Thus, noncompliance with the UCC not only jeopardizes the enforceability of the security interest but can also adversely affect the secured party's position in the priority hierarchy of creditors, potentially leading to losses when the debtor defaults.

The other options may sound plausible but do not accurately reflect the direct consequences of failing to comply with UCC requirements regarding security interests. While noncompliance could lead to administrative complications or additional requirements, losing priority is a specific and immediate legal ramification inherent in the UCC framework.