Smith is a farm equipment dealer in St. Louis County, Minnesota. On January 16, 2020, Smith sold a tractor (used to harvest wheat and other grains) to Edwards, a resident of Douglas County, Wisconsin, for $5,000 cash down and $95,000 payable in 120 monthly installments of $$1,760.31 each (including interest), commencing February 1, 2020. To secure payment of the outstanding debt, Edwards signed a security agreement granting Smith a security interest in the combine.

This is what they signed: THIS AGREEMENT (this “Agreement”), dated as of this _16th day of January, 2020,is made by and between John Edward, an individual (the “Debtor”), with an address at Rural Route 3, Douglas County, Wisconsin, and Smith Implements, LLC (the “Secured Party”), with an address at 3046 Arrowhead, Duluth, Minnesota (St. Louis County).Under the terms hereof, the Secured Party desires to obtain and the Debtor desires to grant the Secured Party security for all of the Obligations (as hereinafter defined).NOW, THEREFORE, the Debtor and the Secured Party, intending to be legally bound, hereby agree as follows: That the collateral for this loan shall be NEW HOLLAND TG285 Tractor The above collateral is the security interest on behalf of a Promissory Note, dated January 16, 2020, made by Debtor, for the benefit of Secured Party, in the original principal amount of $95,000. This reflect a purchase price of $100,000 with a $5000 down payment. This shall be payable over a five-year period at 4.25% interest. Each payment shall be $1,760.31. The first payment shall be February 1, 2020.Grant of Security Interest. To secure the Obligations, the Debtor, as debtor, hereby assigns and grants to the Secured Party, as secured party, a continuing lien on and security interest in the above-named collateral. Assume this was signed by both the debtor and the creditor.

1. Does this document meet the minimum requirements of both the security agreement and the financing statement? Explain fully. Worth 15 points. Do a complete analysis.

2. Assume that Smith took whatever steps were necessary to perfect his security interest in the tractor no later than January 16, 2020. On April 24, 2020, still owing Smith $92,000 (in other words, Edwards was current on payments), Edwards traded that tractor to Jones Farm Equipment, Inc. (another farm equipment dealer), Saint Louis County, Minnesota for a smaller $75,000 tractor to use on Edwards’s “weekend farm” in Saint Louis County. Does Smith still have a perfected Security Interest in the tractor as of May 1, 2020? Please explain. The explanation must include the rule(s) of law and a complete legal analysis. (Notice this is a question I used, and modified from another professor, I will not tell you that person’s name, but want to acknowledge that it is not entirely original). (20 points, 5 points for the correct answer and 15 points for the correct rules of law and explanation)

1. Back to Edwards and Smith’s original transaction, where Smith took whatever steps were necessary to perfect his security interest in the $100,000 tractor no later than January 16, 2020 and that Edwards was current on her payments through April 24, 2020. Instead of trading the TG285 Tractor to Jones Farm Equipment on April 24, 2020, Edwards sold the TG285 Tractor to a neighbor, Mary Todd, for $75,000 cash and deposited the cash in his bank account with a prior balance of $15,000. Then on May 1, 2020, Edwards purchased a small tractor from Jones Farm Equipment for $60,000, to use on Edwards’s “weekend farm” in Douglas 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 small tractor to secure Edwards’s obligation to make the installment payments. Assume that Jones properly perfected her security interest in the tractor on May 1, 2020.

3a. Does Smith still have a security interest in the TG285 Tractor that Mary bought? Need a full analysis. (Worth 15 points)

3b. If Smith still has a security interest in the TG285 (for this question assume that he does), does Smith have any security interest in the small tractor that was purchased from Jones Farm Equipment? If yes, how much? Need a complete analysis. (worth 10 points) (Note: If Smith has a security interest in the TG285 Tractor that would give him $75,000, but Edwards still owes another $25000 based on the original note, so the last part of this questions is asking if Edwards could get all or part of that $25000 through the small tractor purchased from Jones).