Despite promising beginnings, the organic farm in Riverina is not a success.

Four years after it is registered, SAOM becomes insolvent.

SAOM's directors, David, Nick and Peter hold a directors' meeting and appoint an administrator.

NationsBank, which has loaned $7 million to SAOM and is owed five months' worth of unpaid interest on the loan, has a circulating security interest over the inventory of SAOM as well as a mortgage

Under the terms of NationsBank's security instrument, the 'event of default' list includes the appointment of an administrator.

What can NationsBank do to recover the unpaid interest or to enforce its security?