Question
Fact Pattern 30-1B Resource Drilling Company buys equipment for use in its operations, borrowing $1 million from Security Finance Corporation for a security interest in
Fact Pattern 30-1B Resource Drilling Company buys equipment for use in its operations, borrowing $1 million from Security Finance Corporation for a security interest in the equipment. The next day, Resource Drilling borrows $500,000 from Touchstone Loans, also for a security interest in the equipment. Resource Drilling defaults on both loans. Refer to Fact Pattern 30-1B. Suppose that Security Finance perfects its security interest when Resource Drilling takes possession of the equipment. In that circumstance, the party with priority to the collateral on Resource Drillings default would be a. Resource Drilling. b. Touchstone Loans only. c. Security Finance only. d. Security Finance and Touchstone Loans proportionately.
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