Question
Problem 109 On June 8, Business Corp. borrowed $80k from the Bank and gave the bank a security interest in its equipment (worth $100k). On
Problem 109
On June 8, Business Corp. borrowed $80k from the Bank and gave the bank a security interest in its equipment (worth $100k). On July 18, Bank filed a valid financing statement in the proper place. The next day, Business Corp. filed its bankruptcy petition.
Can the trustee destroy Bank's secured position and turn it into a general creditor under the theory that the delayed perfection is preference?
I think the answer is yes becasue ONB did not file its financing statement within 30 days by July 8. ONB filed its financing statement on July 18.
Am I correct?
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Employment Law New Challenges In The Business Environment
Authors: John Moran
6th Edition
978-0133075229
