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Karla used her Case 7140 Tractor, soybean crop and proceeds of the crop as collateral when she obtained an operating loan of $50,000 from Big

Karla used her Case 7140 Tractor, soybean crop and proceeds of the crop as collateral when she obtained an operating loan of $50,000 from Big Bank on April 30, 2019. While she was planting, the 7140 broke a head bolt and caused $2,000 of damage to the engine. Joe Higgins fixed the engine on May 5, 2019 and filed a financing statement as a mechanic's lien on May 15, 2019. In the meantime, Big Bank filed its financing statement on May 8, 2019. After running out of soybean seed on May 12, 2019, Karla approached the local cooperative seeking $3,000 worth of additional seed so that she could finish planting her soybean crop. Assume that the co-op provided the seed and followed the necessary steps required to obtain an ag supply dealer's lien under state law which, if complied with, provides priority over a previously perfected security interest. Unfortunately, the weather entirely wiped out Karla's soybean crop. As a result, Karla defaulted on all her obligations. Karla received $5,000 in disaster payments for the loss of the soybean crop. Assume that Big Bank repossessed the Case 7140 Tractor and sold it, following proper A. UCC rules, for $35,000. The costs of the sale and repossession, including attorney fees, were $1,500. How (in what amount and order) are the proceeds from the sale of the tractor to be disbursed? (6 pts.) I B. Who is entitled to the disaster payments, and in what amount? (2 pts.)

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