9. U.S. Electronics, a Missouri corporation with a place of business in DeKalb C
ID: 421569 • Letter: 9
Question
9. U.S. Electronics, a Missouri corporation with a place of business in DeKalb County, Georgia, borrowed money from a Missouri bank. The corporation gave the bank a security interest in all of its machinery and equipment. The bank filed a financing statement in Fulton County rather than in DeKalb County, as required by law. U.S. Electronics defaulted on the loan and fell behind on its rent. The corporation’s landlord obtained a judgment against it for past due rent, becoming a lien creditor. The landlord claimed priority over the bank for the proceeds of a sheriff’s sale of the machinery and equipment, arguing that the bank’s security interest was not perfected. Do you agree? Why or why not? [See: United States v. Waterford No. 2 Office Center, 271 S.E.2d 790 (GA).]
Explanation / Answer
Priorities. PC Contractors, Inc., was an excavating business in Kansas City, Missouri . Union Bank made loans to PC, subject to a perfected security interest in its equipment and other assets, including “after-acquired property.” In late 1997, PC leased heavy construction equipment from Dean
according to landlords claimed property The landlord claimed priority over the bank for the proceeds of a sheriff’s sale of the machinery and equipment, arguing that the bank’s security interest was not perfected.because security intrest is exacavating buisness
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