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In the Problem below, there is what Comment 4 to 9-507 refers to as a case in which a filed financing statement provides a name
In the Problem below, there is what Comment 4 to 9-507 refers to as a case in which a filed financing statement provides a name that, at the time of filing, satisfies the requirements of Section 9-503(a) with respect to the named debtor but, at later time, no longer does so. The business entity has not changed, only its name has. PROBLEM Shannon and Patricia Scott own all of the stock of K.C. of Camden, Inc., which entered into a security agreement granting a security interest in all inventory, accounts, machinery, equipment, furniture, and fixtures, now owned or thereafter acquired, to Bank as security for a loan. Bank promptly filed a financing statement naming K.C. of Camden, Inc. as the debtor. A year later the Scotts decided to change the name of their company to "Camden Audio and Video, Inc." They did not inform Bank of the change. The newly renamed company applied for a loan from Lender, which advanced the funds after finding no financing statement on record in the name of Camden Audio and Video, Inc. Lender took a security interest in the same assets covered by Bank's security interest and filed a financing statement naming Camden Audio and Video, Inc. as the debtor. Which secured party is prior as to the described collateral acquired by the debtor before and after the name change? Would you get the same result if the new name were "K.C. of Camden Audio and Video, Inc."? See 9- 507(b)-(c) and Comment 4 to 9-507
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