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

question 7

Multiple Choice

Fact Pattern 20-1
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 $500,000 from Interstate 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, 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.

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Definitions:

Lower-Middle Class

A socio-economic group situated above the working class and below the upper-middle class, often characterized by moderate income levels, job security, and some educational achievements.

Upper-Middle Class

A socio-economic class characterized by high income, significant educational attainment, and professional careers, but not part of the societal elite.

Assisted Human Reproduction Act

A law enacted by the Parliament of Canada to regulate assisted human reproduction and related research.

Child and Family Services Act

Legislation aimed at protecting the welfare and rights of children and families, often by providing services and support for children's safety and well-being.