Phil decided to start a business repairing diesel-engine trucks. His mother's farm had a large metal barn that had been used in the past to repair farm machinery. As Phils mother no longer used the barn for that purpose, she agreed to let her son, Phil perform truck repairs in it. The barn contained a large portable welding machine (worth approximately $25,000) that would be useful for making repairs on large trucks. The mother made it clear to Phil that he could use the barn but not her welding machine. Nonetheless, without his mother's knowledge, the son frequently used the welding machine for truck repairs.

On June 1, Phil obtained a $50,000 business loan from a local bank. The man and the bank signed a loan agreement. It contained a provision pursuant to which Phil granted the bank a security interest "in all my equipment, including equipment hereafter acquired" to secure his repayment obligation. On the same day, the bank properly filed a financing statement listing Phil as the debtor and indicating that the collateral was "all equipment, including equipment hereafter acquired." On June 10, Phil bought some specialized tools used for diesel-engine repair. Phil agreed to pay the tool seller $15,000 for the tools, paying $1,500 down and agreeing to pay the remaining $13,500 to the tool seller in monthly installments over a two-year period.

Phil signed a written agreement granting the seller a security interest in these tools to secure the man's obligation to pay the remaining $13,500. The next day, the tool seller properly filed a financing statement listing the man as the debtor and indicating that the collateral was "diesel-engine repair tools." Phil has defaulted on his obligations to the bank and the tool seller.

1. Does the bank have an enforceable security interest in the portable welding machine? Explain.
2. Both the bank and the tool seller are asserting security interests in the diesel-engine repair tools Does the bank have an enforceable security interest in these tools? Explain.
3. Both the bank and the tool seller are asserting security interests in the diesel-engine repair tools Does the tool seller have an enforceable security interest in the tools? Explain.
4. Both the bank and the tool seller are asserting security interest in the diesel-engine repair tools whose interest has priority? Explain in detail.