Question
For the purpose of building an addition to her house, Delilah obtained a construction loan from Local Bank secured by a mortgage on the house.
For the purpose of building an addition to her house, Delilah obtained a construction loan from Local Bank secured by a mortgage on the house. The following events then occurred: Delilah purchased a furnace for the addition on credit from Heating, Inc. 11/12 Local Bank recorded the mortgage securing the construction loan. 11/17 Heating took a security interest in the furnace and made a fixture filing of a financing statement. 11/19 The furnace was permanently installed. 3/10 The addition was completed. 3/11 In a contest between Local Bank and Heating, Inc.,
A) Local Bank will win because it recorded first.
B) Local Bank will win because it recorded before the goods became fixtures, and the fixtures were installed before completion of construction.
C) Heating, Inc. will win because construction was completed after the goods became fixtures.
D) Heating, Inc. will win because it made a fixture filing before the goods became fixtures, and the goods were purchased before Local Bank recorded.
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