Question
First Bank loans Lila $1500 so that she may purchase a new computer for her office secretary.Lila signs a security agreement and a financing statement
First Bank loans Lila $1500 so that she may purchase a new computer for her office secretary.Lila signs a security agreement and a financing statement which First Bank duly files.Two months later, Lila takes out a loan at Valley Bank and uses the computer as collateral.A security agreement and financing statement is then signed by Lila and filed by Valley Bank.Lila's secretary never uses the computer, so Lila puts an ad in the Athens News and sells the computer to Angie.If Lila defaults on the loans, whose interest in the computer has priority?Fully explain.
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