Question
Floating Lien Joseph H. Jones and others (debtors) borrowed money from Columbus Junction State Bank (Bank) and executed a security agreement in favor of Bank.
Floating Lien Joseph H. Jones and others (debtors) borrowed money from Columbus
Junction State Bank (Bank) and executed a security agreement in favor of Bank. Bank
perfected its security interest by filing financing statements covering "equipment, farm
products, crops, livestock, supplies, contract rights, and all accounts and proceeds thereof' with the low secretary of state. Four years and 10 months later, Bank filed a continuation
statement with the lowa secretary of state. Four years and 10 months after that, Bank filed a
second continuation statement with the low secretary of state. Two years later, the debtors filed for Chapter 7 liquidation bankruptcy. The bankruptcy trustee collected $10,073 from the
sale of the debtors' crops and an undetermined amount of soybeans harvested on farmland
owned by the debtors. The bankruptcy trustee claimed the funds and soybeans on behalf of the bankruptcy estate. Bank claimed the funds and soybeans as a perfected secured creditor.
Who wins?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started