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Giorgio borrows $ 3 0 0 , 0 0 0 from First National Bank to start a pizza shop. He uses the money to purchase
Giorgio borrows $ from First National Bank to start a pizza shop. He uses the money to purchase pizza ovens, kitchen equipment, dining equipment, and inventory. First National Bank secures its interest by identifying the pizza ovens and kitchen equipment as collateral, but neglects to file a financing statement. After six months, Giorgio needs more cash, and borrows $ from Second National Bank, using the pizza ovens to secure the loan. Second National Bank also neglects to file a financing statement. Three months later, Giorgio is indebted to so many creditors that he defaults on both loans, gives up the pizza business, sells off everything except the usual piping hot pizzas to a restaurant liquidator, and flees to Tuscany. Who haSipriority interest in the pizza ovens?
First National Bank
Second National Bank
The restaurant liquidator
Giorgio
Giorgio's unsecured creditors
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