Bart is a mechanic who fixes diesel engines for the local John Deere dealership. After many years of planning and saving money, Bart decides to open his own repair shop - Barts Garage. Using his savings as a down payment, Bart borrows money from Macomb State Bank to buy certain equipment to open the garage (a mechanical lift, a hydraulic engine hoist, computers, etc.). After his down payment, Bart borrows $80,000 from Macomb State Bank. The bank has Bart sign a security agreement listing all equipment, now owned and hereafter acquired as collateral for the loan. The bank then files a financing statement perfecting its interest in all of Barts equipment, now owned and hereafter acquired. Bart then talks to Snap Tools about buying a tool chest and some high- quality tools to use in his garage. Snap Tools agrees to sell Bart $10,000 worth of tools if he will sign a promissory note for the purchase price and give them a security interest in the tools. Bart agrees and on January 10th, he signs a promissory note and a security agreement giving Snap Tools a security interest in the tools he is purchasing from them. Bart then takes possession of the tools on January 15th. Snap Tools files a financing statement listing all of Barts tools as collateral on January 24th. Bart begins to operate his garage, but finds the diesel mechanic game much more difficult than he anticipated. He struggles to make payments to his creditors on time. Finally, in March, Bart finds he is out of money, he stops pay his creditors and closes Barts Garage. Representatives from Macomb State Bank come to the garage to repossess all of Barts equipment,

including the tools. Snap Tools hears about the repossession and sends Macomb State Bank a letter demanding possession of the tools. In a dispute over repossession of the tools, who will win? Explain which creditor has priority and why?