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Fact Pattern C. Avalanche Ski Equipment sells ski equipment. It maintains a line of credit with First State Bank to finance its inventory. Avalanche and
Fact Pattern C. Avalanche Ski Equipment sells ski equipment. It maintains a line of credit with First State Bank to finance its inventory. Avalanche and First enter into a security agreement that provides for coverage of proceeds, after-acquired inventory, present inventory, and future advances. First files its financing statement with the appropriate filing office. Avalanche currently owes $50,000 to First. On Monday, Avalanche sells a new pair of skis for $500 plus a used pair in trade. That same day, Avalanche purchases two new pairs of skis from a manufacturer for cash. Later that same day, Avalanche borrows $8,000 against its line of credit to meet its payroll. At this point, First has a perfected security interest in which of the following? O The used pair of skis and the two new pairs of skis. O The two new pairs of skis O None of the above O The used pair of skis obtained in trade
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