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Lender has been financing Dealer's inventory for some time be a recently placed Dealer on credit watch with new restrictions on Dealer, operations. One of
Lender has been financing Dealer's inventory for some time be a recently placed Dealer on "credit watch" with new restrictions on Dealer, operations. One of these limitations is that Dealer must obtain Lende, consent to the sale of any machine with a sale price exceeding $5.000 l violation of this limitation, Dealer sold and delivered to Buyer a machine lo $10,000 cash. Buyer is a sophisticated person who was well aware the Dealer's inventory was very likely to be subject to a security interest in fant of a financial institution. Buyer also knew that Dealer was having problems and took this into consideration in negotiating for a low price in the machine. You may assume that Lender's security interest was perfected by filing. What are Lender's rights with respect to the machine now a Buyer's possession? See Comment 3 to 9-320
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