Maria is the owner of a pet store. She actually owns the building where the...
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Maria is the owner of a pet store. She actually owns the building where the pet store is located. Additionally she has two cages of exotic birds, 25 dogs, 10 aquariums of fish, and plenty of pet supplies. During the course of her career as a pet store owner, Maria has entered into a variety of transactions.
On day 1, Maria borrowed $10,000 from Bank A, and the bank filed a financing statement in all inventory. This financing statement was signed by Maria. Later in the year, Bank A obtained a signed security agreement on day 72 (the actual date of attachment) in all inventory owned now or after acquired. There is still a balance on this loan.
On day 7, Bank B gave a loan to Maria in the amount of $200,000 and thereby obtained a valid security interest in all existing and any after acquired inventory. All of the necessary documents were timely signed and/or filed on day 7. On day 59, the loan from Bank B was paid-in-full.
On day 12, Maria borrowed $70,000 from Bank C, and granted a signed security agreement, but NOT a financing statement, in favor of Bank C for "all inventory owned now or after acquired. Bank C had already made the loan to Maria on day 2. There is still a balance on this loan.
On day 30, Maria took out a loan for $100,000 from Bank D, and granted a mortgage in favor of Bank D on the building owned by Maria. This is a first mortgage. There is still a balance on this loan.
Maria's Creditors need your help. You are ranking rights to the inventory. Before answering the following multiple choice questions, you want to do two "ranking tables" of all of the creditors on both day 55 and on day 80, to answer the questions below. You want to have one table for each of those days.
What is the status of Bank A on Day 25 as it relates to inventory?
[A. Secured and Perfected, B. Secured and Unperfected, C. Unsecured and Unperfected, or D. is a creditor that has no rights with respect to inventory]
What is the status of Bank B on Day 48 as it relates to inventory?
[A. Secured and Perfected, B. Secured and Unperfected, C. Unsecured and Unperfected, D. is a creditor that has no rights with respect to inventory]
What is the status of Bank C on Day 75 as it relates to inventory?
[A. Secured and Perfected, B. Secured and Unperfected, C. Unsecured and Unperfected, D. is a creditor that has no rights with respect to inventory]
What is the status of Bank A on day 78 as it relates to inventory?
[A. Secured and Perfected, B. Secured and Unperfected, C. Unsecured and Unperfected, D. is a creditor that has no rights with respect to inventory]
What is the status of Bank D on day 82 as it relates to inventory?
[A. Secured and Perfected, B. Secured and Unperfected, C. Unsecured and Unperfected, D. is a creditor that has no rights with respect to inventory]
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