Study each of the following cases. Answer the questions that follow with Yes or No.

Milbank Enterprises decided to purchase equipment for its printing business from Lee Equipment. On April 1, Lee Equipment agreed that Milbank could finance the purchase by paying Lee in equal monthly installments over a period of two years. Two months after buying the equipment, Milbank needed to borrow money from working capital from Capital Bank. Capital Bank secured the debt using Milbank’s printing equipment as collateral, filing a financing statement on July 1. Subsequently, Milbank needed more money for working capital and borrowed money from Easy Times Credit. Easy Times Credit also filing a financing statement listing the printing equipment as collateral on September I.

a. Do Capital Bank and Easy Times Credit have perfected security interests?   

b. Does Lee Equipment have a perfected security interest?  

c. If Milbank defaults, who would have first priority to seize the printing equipment? Who would have second priority?