Question
ToyCo manufactures educational toys and games. On July 1, Bloomington Bank (BB) loaned $100,000 to ToyCo for general operations. In return, ToyCo gave BB a
ToyCo manufactures educational toys and games. On July 1, Bloomington Bank ("BB") loaned $100,000 to ToyCo for general operations. In return, ToyCo gave BB a note for the $100,000 and a security agreement covering all of ToyCo's present and after-acquired equipment. BB filed a financing statement on July 2. On July 15, Willie sold and delivered a new toy-manufacturing machine to ToyCo. ToyCo agreed to pay for the equipment over time and executed a security agreement granting a security interest in the new toy-manufacturing machine to secure those payments. Willie filed a financing statement covering the equipment on August 10. Willie wants to know whether his security interest or BB's has priority.
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