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help please Secured Transactions Michael and Debra Brown, doing business as D&M Enterprises, Inc., bought a retail electronics store under a franchise agreement from a
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Secured Transactions Michael and Debra Brown, doing business as D&M Enterprises, Inc., bought a retail electronics store under a franchise agreement from a national company, Radio Hut. The Browns borrowed from State Bank to pay for the business and signed loan documents and a financing statement, which identified the Browns as "Debtors." Elsewhere on the financing statement, the bank identified "D&M Enterprises, Inc., Radio Hut, Debra K. Brown, Michael C. Brown" as "Debtors." The statement covered, in part, the store inventory. The bank filed the financing statement with the proper government agency. Three years later, the store closed. Radio Hut terminated the franchise and took possession of the inventory, claiming the Browns and D&M owed Radio Hut $6,394.73. State Bank filed a suit in a state court against Radio Hut, claiming a perfected security interest in the inventory with priority over Radio Hut's claim. Did the bank's security interest take priority over Radio Hut's claim? 1. The borrower in this scenario is D&M Enterprises, Inc.
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