Simtech Inc Needs $1 000 000 for Research Related to a New

question 41

True/False

Simtech Inc needs $1 000 000 for research related to a new product it is developing. It has been discussing a loan with Toronto Bank. On January 10, the Bank files a financing statement to register a security interest in all the assets of Simtech. On January 12, Simtech borrows $20 000 from one of its shareholders secured by a security interest in all the assets of the corporation. The shareholder files a financing statement to register its security interest on the same day. On January 15, the Bank and Simtech agree that the Bank will lend Simtech $1 000 000 and Simtech agrees to give the Bank a security interest in all of its assets. If Simtech defaulted on the loans to both the shareholder and the Bank, the shareholder's security interest would have first priority because the shareholder advanced its money first, before the Bank and before its security interest was perfected.

---

Definitions:

Developmentally At Risk

Refers to children who are at risk of not meeting their developmental milestones due to various environmental, biological, or psychological factors.

Hours Per Day

A measure of time allocation, indicating how many hours are spent on a particular activity within a 24-hour period.

Protein-Calorie Malnutrition

A nutritional deficiency state resulting from insufficient intake of proteins and calories, often leading to growth impairment and weakened immunity.

Kwashiorkor

A potentially fatal form of malnutrition in which the diet is extremely low in protein.