Reference no: EM133410644

Question

Back to Edwards and Smith's original transaction, (the NEW HOLLAND TG285) where Smith took whatever steps were necessary to perfect his security interest in the $100,000 tractor no later than June 16, 2021 and that Edwards was current on her payments through September 24, 2021. Instead of trading the TG285 Tractor to Jones Farm Equipment for the John Deere tractor on September 24, 2021, Edwards sold the TG285 Tractor to a neighbor, Mary Todd, for $75,000 cash and deposited the cash in his bank account with a prior balance of $15,000. Therefore, the balance at this time is $90,000.

a. Does Smith still have a security interest in the TG285 Tractor that Mary bought? Need a full analysis.

b. Does Smith have a security interest in any of the money that Edwards put in his bank from the $75,000 sale to Todd? However, at this time there is only $75,000 balance in that bank account. If yes, how much? Need a complete analysis.

c. You must come up with the correct dollar amount that Smith might be entitled to. The best way to approach these questions is to outline who is, and who bought/sold what.