Question
Answer the below questions using this scenario Robert Johnson is the owner of a pet store. He actually owns the building where the pet store
Answer the below questions using this scenario
Robert Johnson is the owner of a pet store. He actually owns the building where the pet store is located. Additionally, he has two cages of exotic birds, 25 dogs, 10 aquariums of fish, and plenty of pet supplies. During the course of his career as a pet store owner, Mr. Johnson has entered into a variety of transactions.
On day 1, Robert borrowed $10,000 from Bank A, and the bank filed a financing statement in all inventory. This financing statement was signed by Robert. Later in the year, Bank A obtained a signed security agreement on day 72 (the actual date of attachment) in all inventory owned now or after acquired. There is still a balance on this loan.
On day 7, Bank B gave a loan to Robert in the amount of $200,000 and thereby obtained a valid security interest in all existing and any after acquired inventory. All of the necessary documents, including a security agreement and financing statement, were timely signed and/or filed on day 7. On day 59, the loan from Bank B was paid-in-full.
On day 12, Robert borrowed $70,000 from Bank C and granted a signed security agreement, but NOT a financing statement, in favor of Bank C for "all inventory owned now or after acquired." There is still a balance on this loan.
On day 30, Robert took out a loan for $100,000 from Bank D and granted a mortgage in favor of Bank D on the building owned by Robert.This is a first mortgage. There is still a balance on this loan.
1. On Day 85, what is the status of Bank A as it relates to inventory?
a. Secured and Perfected
b. Secured and Unperfected
c. Unsecured and Unperfected
d. Not a creditor with rights in inventory
2.On Day 41, what is the status of Bank B as it relates to inventory?
a.
Secured and Perfect
b.
Secured and Unperfected
c.
Unsecured and Unperfected
d.
Not a creditor with rights in inventory
5. In day 30, what is the status of Bank A with respect to inventory?
a.
Secured and Perfected
b.
Secured and Unperfected
c.
Unsecured and Unperfected
d.
Not a creditor
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