In June 2003 and November 2005, The Four County Bank provided financing for the purchase of two
Question:
In June 2003 and November 2005, The Four County Bank provided financing for the purchase of two different pieces of foresting equipment known as “Tigercats” by Shepherd Brothers Timber Company. Four County perfected its security interests in both pieces of equipment by filing financing statements. While Four County’s original financing statements were still effective, Shepherd sold both pieces of equipment to Tidewater Equipment Company, which later resold them. In October 2008 and March 2011, more than five years after the filing of each of the original financing statements, Four County attempted to file continuation statements as to the equipment. After Shepherd declared bankruptcy, Four County sued Tidewater to recover the equipment or its value. Four County argued that Tidewater was liable for the value of the equipment because Tidewater should have known of Four County’s perfected security interest at the time Tidewater resold the equipment. Do you agree with Four County’s argument?
Step by Step Answer:
Dynamic Business Law
ISBN: 9781260733976
6th Edition
Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs