Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hi. I need help answering Question 6, which draws from facts in question 5, also outlined below. Question 5 Facts: Morty's Tool & Die purchases
Hi. I need help answering Question 6, which draws from facts in question 5, also outlined below.
Question 5 Facts:
Morty's Tool & Die purchases a new grinding machine with a loan from Machine Financing, Inc. (\"MFI\"). MFI takes the necessary steps to create a purchase money security interest in the machine. MFI's security agreement and nancing statement provide that its security interest extends to all after-acquired equipment, thus creating a purchase money security interest in any such machinery. Morty's Tool & Die (from Question 5) sells the grinding machine and deposits the $5,000 it receives in its account at Delta Bank on September 1. After the deposit has been made, the account has $7,000 in it. Between then and September 25, the date on which MFI learns of the sale, the balance in the account ranges from $3,500 to $42,000. On September 25, the balance is $5,000, and MFI provides written notice of its interest to Delta Bank. What answer is most correct as to the maximum value of MFI's security interest in the account? a. $0, because more than 21 days have elapsed since the sale. b. $0, because MFI did not provide timely notice to Delta Bank. c. $2,000 cl. $3,500 e. $5,000Step 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