Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

33. On June 30 Piggy Bank took a security interest in Kermit's equipment and after- acquired equipment and perfected immediately. On August 5, Kermit purchases

image text in transcribed
33. On June 30 Piggy Bank took a security interest in Kermit's equipment and after- acquired equipment and perfected immediately. On August 5, Kermit purchases new equipment on credit from Lillypad, Inc.. Lillypad, Inc. files a financing statement within 20 days. If Kermit defaults on both loans, who has the best claim to the new equipment? a. Piggy Bank has a priority interest and right to repossess the New Equipment because its interest was first to attach. b. Piggy Bank has a priority interest and right to repossess the New Equipment because its interest was first to perfect. C, Lillypad, Inc. has a priority interest and right to repossess the New Equipment because it has a PMSI and perfected & notified Piggy Bank before Kermit took possession. d. Lillypad, Inc., has a priority right to repossess the New Equipment because it has a PMSI in equipment and perfected within 20 days

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Business Of Personal Finance

Authors: Joseph Calandro Jr, John Hoffmire

1st Edition

1032104562, 978-1032104560

More Books

Students also viewed these Finance questions