Interest in the kitchen equipment versus tom

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Scenario Three Kevin is a chef from New Zealand and recently moved to Melbourne. He is keen to open up a Café in Richmond. He finds a great premises to lease on Bridge Street. He signs a lease with the property owner, Tom. Kevin cant afford to buy the kitchen equipment outright so he gets a loan from Shonk Bank for $100,000. A term of the loan agreement was registers the equipment on the Personal Property Security Act and then delivers it to Kevin. Kevin opens the café but it doesn't do well. After a few weeks, he is unable to keep up the payments to Tom, Zane and other suppliers. After another month of not receiving his rent, Tom changes the locks on the premises and says that until his rent is paid in full, the has complete ownership and interest of everything inside. Advise Shonk Bank on what their position is in regards to their interest in the kitchen equipment versus Tom's.

Reference no: EM133004026

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