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

question 56

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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

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The governing body of the United States under the Articles of Confederation, operating from 1781 to 1789 before being replaced by the U.S. Congress under the Constitution.

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