Can abc enforce its security interest even though the collat

Reference no: EM13783846

Scenario:

The Whites, Carole and Jim, owned DiWine, Inc., a wine shop. The Whites needed money for the business, and borrowed money from ABC Bank (ABC). They personally and on behalf of the DiWine Corporation executed a promissory note, security agreement, and financing statement to ABC. ABC properly filed a security agreement and financing statement naming DiWine's inventory, stock in trade, furniture, fixtures and equipment "now owned or hereafter to be acquired" as collateral. The Whites also later borrowed money from a junior lienholder, whose promissory note was secured by the same collateral. DiWine subsequently defaulted on both notes. Without informing ABC, the junior lienholder took possession of the assets of DiWine and transferred them to a newly formed corporation, Glass, Inc. ABC feared the collateral would not be adequately protected, thus, filed a motion to enforce its security interest.

A. Can ABC enforce its security interest even though the collateral was transferred to another party? Why or why not?

Reference no: EM13783846

Questions Cloud

Assignment on performance management : About Performance Management.

Using the internet identifies a third party logistics : Using the internet identifies a third party logistics (3PL) provider and describes the type of services it offers and the advantages it might provide the outsourcing company.

Role of mediator and provide examples of each : Describe three ethical issues involved when taking the role of mediator and provide examples of each.

Can abc enforce its security interest even though the collat : Scenario:The Whites, Carole and Jim, owned DiWine, Inc., a wine shop. The Whites needed money for the business, and borrowed money from ABC Bank (ABC). They personally and on behalf of the DiWine Corporation executed a promissory note, security agree..

Alternatives Strategies for Acquiring IT Applications : Base on your book and class lecture Identify and explain five alternatives Strategies for Acquiring IT Applications in an organization? The difference between tangible benefit and intangible benefits for justifying IT investment in an organization. W..

Issue of advocacy in the human services field : Write a 1- to 2-page paper that addresses the issue of advocacy in the human services field.

Process of converting complex data structures : A foreign key in a relation that references the primary key values of that same relation is referred to as a

Contrast interest-based negotiation : Compare and contrast interest-based negotiation with power- and rights-based negotiations.

User Account

All Pages