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Northwest Solar needs funds to meet its payroll, to make other current operating expenses, and to pay its creditors. Rush Corden, Northwest Solar only shareholder, loans the company $500,000 and accepts a promissory note signed on behalf of Northwest Solar by Karen Thomas , the firm’s accountant. Northwest Solar financial problems continue, however, and the firm’s creditors file an involuntary petition to force it into bankruptcy. Is Rush Corden entitled to repayment of the loan to Northwest Solar? If so, what is the priority of the claim? Please answer fully explaining the law and applying the facts to this case. Also cite to your outside sources.
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