Question
Carol borrows $50,000 to purchase seven industrial Xerox copying machines, and open up her own copy shop. The bank loan requires that Carol grant the
Carol borrows $50,000 to purchase seven industrial Xerox copying machines, and open up her own copy shop. The bank loan requires that Carol grant the bank a security interest in any property acquired after the original agreement is signed. After she shows the loan letter to Xerox, it agrees to sell her the copiers for $80,000, to be paid over five years. Who has priority in the copying machines? A. The bank, if it filed and perfected its interest first B. The bank because of the "floating lien" loan agreement C. Xerox, if it filed the loan agreement before the bank did D. Xerox, because this is a purchase money security interest
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