Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assuming that Smith took whatever steps were necessary to perfect his security interest in the combine no later than September 1, 2017 and that Edwards
- Assuming that Smith took whatever steps were necessary to perfect his security interest in the combine no later than September 1, 2017 and that Edwards was current on her payments through July 1, 2018, suppose instead that, on July 24, 2018, Edwards sold the combine for $75,000 cash and deposited the cash in a bank account with a prior balance of $15,000. Suppose, further, that on July 30, 2018, Edwards purchased a tractor from Jones for $60,000, to use on Edwardss weekend farm in Cherokee County. Edwards wrote Jones a check in the amount of $30,000, drawn on the aforementioned bank account, and agreed to pay Jones the balance due in installments of $1,000 per month for 36 months, giving Jones a security interest in the tractor to secure Edwardss obligation to make the installment payments. Assume that Jones properly perfected her security interest in the tractor on July 31, 2018.
What is Smiths collateral as of August 1, 2018?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started