Question
41. Bank A loans Company money and is granted a security interest in all of Companys property. Bank A forgets to file a UCC financing
41. Bank A loans Company money and is granted a security interest in all of Companys property. Bank A forgets to file a UCC financing statement. A year later, Bank B loans the Company money and is also granted a security interest in all of Companys property. Bank B files a UCC Financing Statement to perfect its security interest. Company fails to pay the banks back and the banks want to seize the Companys collateral. Bank A is owed $150,000. Bank B is owed $50,000. Under these facts, what is most likely the result:
Bank A and Bank B have the same priority over the collateral and will share all proceeds
Bank A has priority over the collateral because it loaned money first
Bank A has priority over the collateral because it loaned more money
Bank B has priority over the collateral because it perfected its security interest
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