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Security Over Personal Property On day 1, Manawatu Aviation Ltd approaches Bank Ltd seeking a loan to be secured over all its present and future property.

On day 3, Manawatu Aviation Ltd and Bank Ltd sign an unconditional agreement pursuant to which Manawatu Aviation Ltd agrees to give a security interest in all its present and future assets to Bank Ltd and Bank Ltd agrees to make a loan to Manawatu Aviation Ltd on day 25.

On day 10, Manawatu Aviation Ltd buys a helicopter from Aeronautics Ltd on retention of title terms detailed in Aeronautics Ltds invoice signed by Manawatu Aviation Ltd. Manawatu Aviation Ltd borrowed the necessary deposit from Finance Ltd and agrees to give Finance Ltd a security interest in the helicopter.

On day 12, Bank Ltd registers a financing statement.

On day 13, Manawatu Aviation Ltd takes possession of the helicopter.

On day 15, Manawatu Aviation Ltd and Lender Ltd reach an oral agreement whereby Manawatu Aviation Ltd agrees to grant a security interest in the helicopter to Lender Ltd if Lender Ltd, after due diligence, agrees to lend money to Manawatu Aviation Ltd.

On day 16, Lender Ltd registers a financing statement.

On day 17, Manawatu Aviation Ltd and Lender Ltd sign a written security agreement that gives effect to their oral agreement of day 15.

On day 18, Finance Ltd registers a financing statement.

On day 19, Aeronautics Ltd registers a financing statement.

On day 20, Lender Ltd advances a loan to Manawatu Aviation Ltd.

On day 22, Manawatu Aviation Ltd signs the security agreement entered into with Finance Limited.

On day 25, Bank Ltd advances a loan to Manawatu Aviation Ltd pursuant to their agreement of day 3.

State the order of priority for each claim to the helicopter. Give reasons and authority for your answers. [TOTAL: 25 MARKS]

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