Fact Pattern 20-1 General Leasing Company (GLC) Buys Equipment for Use as Inventory

question 56

Multiple Choice

Fact Pattern 20-1
General Leasing Company (GLC) buys equipment for use as inventory, borrowing $1 million from Business Finance Corporation for a security interest in the equipment. The next day, GLC borrows $500,000 from Commercial Bank, also for a security interest in the equipment. GLC defaults on the loans.
-Refer to Fact Pattern 20-1.Suppose that two weeks after GLC takes possession of the equipment, Business Finance and Commercial Bank file financing statements, with Interstate filing first. In that circumstance, the party with priority to the equipment is​

• A) ​GLC.
• B) ​Business Finance and Commercial Bank proportionately.
• C) ​Business Finance only.
• D) ​Commercial Bank only.

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Definitions:

Port Adapter

A device used to connect different types of ports or interfaces on computers and network equipment, enabling compatibility and connectivity between devices.

Graphic

Pertaining to visual art or visual representation of information, data, or concepts using various means like drawings, diagrams, animations, or photographs.

FireWire

A high-speed serial bus interface standard for connecting digital devices, especially audio and video equipment, to a computer, allowing for rapid data transfer.

IEEE 1394

An interface standard for a serial bus for high-speed communications and isochronous real-time data transfer, commonly referred to as FireWire.