Fact Pattern 18-2 General Leasing Company (GLC) Buys Equipment for Use as Inventory

question 27

Multiple Choice

Fact Pattern 18-2
General Leasing Company (GLC) buys equipment for use as inventory, borrow¬ing $1 million from Helpful Finance Corporation for a security in¬terest in the equipment. The next day, GLC borrows $513,000 from Interstate Bank, also for a security interest in the equipment. GLC defaults on the loans.
-Refer to Fact Pattern 18-2.Suppose that two weeks after GLC takes possession of the equipment,Helpful and Interstate file financing statements,with Interstate filing first.In that circumstance,the party with priority to the equipment is

• A)GLC.
• B)Helpful and Interstate proportionately.
• C)Helpful only.
• D)Interstate only.

---

Definitions:

Informational Power

Power derived from possessing knowledge or information that is needed or wanted by others.

Formal Access

Formal access refers to the official or authorized permission to obtain or use information, resources, or locations.

Unethical Behavior

Actions that go against moral principles or professional standards, often causing harm or conflict.

Personal Integrity

The quality of being honest and having strong moral principles, which guides individuals to act ethically and consistently with their values.