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Suppose that Fisher Loan Company, Incorporated (Fisher) has a security agreement covering Back 40 Farm Supplies, LLC's (Back 40) equipment dated August 1, 2022 and
Suppose that Fisher Loan Company, Incorporated (Fisher) has a security agreement covering Back 40 Farm Supplies, LLC's (Back 40) equipment dated August 1, 2022 and advances money to Back 40 on that date. Farmer's Bank, Incorporated (Farmer's) obtains a security agreement covering the same equipment and advances money to Back 40 on September 15, 2022. Which party, if any, has priority in terms of a security interest on Back 40's inventory? Multiple Choice Pursuant to the "FIFO" (first in, first out) method, Fisher's security interest has priority. Fisher's security interest has priority, since its security interest was the first to attach. Since both banks' security interests attached, their security interests have equal priority. Pursuant to the "LIFO" (last in, first out) method, Farmer's security interest has priority
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