Fact Pattern 30-1B (Questions B15-B16 Apply)

question 7

Multiple Choice

Fact Pattern 30-1B (Questions B15-B16 apply)
Resource Drilling Company buys equipment for use in its operations, borrow?ing $1 million from Security Finance Corporation for a security in?terest in the equipment. The next day, Resource Drilling borrows $500,000 from Touchstone Loans, also for a security interest in the equipment. Resource Drilling defaults on both loans.
-Refer to Fact Pattern 30-1B. Suppose that two weeks after Resource Drilling takes possession of the equipment, Security Finance and Touchstone Loans file financing statements, with Touchstone Loans fil?ing first. In that cir?cum?stance, the party with priority to the equipment is

• A) Resource Drilling.
• B) Security Finance and Touchstone Loans proportionately.
• C) Security Finance only.
• D) Touchstone Loans only.

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Definitions:

Highly Vascular

Refers to tissues or organs with a high density of blood vessels, facilitating efficient blood flow and nutrient delivery.

Heals Well

Refers to the capacity of an organism, especially human skin and tissues, to recover from injuries or wounds effectively.

Scar

A mark left on the skin or within body tissue where a wound, burn, or sore has not healed completely and fibrous connective tissue has developed.

Granulation Tissue

The new vascular tissue formed in the healing of wounds, characterized by red, granular appearance due to the proliferation of capillaries.