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. | 14/17 |
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.,
Question 9 options:
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. | |
C) Heating, Inc. will win because construction was completed after the goods became fixtures. | |
B) Local Bank will win because it recorded before the goods became fixtures, and the fixtures were installed before completion of construction. | |
A) Local Bank will win because it recorded first. |
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