What is the order of priority of these security interests

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Reference no: EM131994050

Cousins' Consignment Stores, L.L.C. (CCS) borrows $20,000 from Early Bird, Inc. Early Bird has no security interest. A month later on October 2nd, CCS borrows an additional $10,000 from both A-1 Bank, Inc. and BancFirst, L.L.C. CCS secures its debts with A-1 and BancFirst with its current and future inventory. A-1 is the first to perfect its interest on October 7th, and BancFirst perfects its interest one week later. On November 1st Dealer's Warehouse, L.P. delivers inventory to CCS on credit. Dealer's perfects its purchase money security interest in the new inventory on the same day. On December 7th, CCS fails to make its payments to all three creditors, A-1, BancFirst, and Dealer's.

What is the order of priority of these security interests? Explain thoroughly.

Now assume that Dealer's did not provide inventory, but instead provided an automobile used for making deliveries. A-1 and BancFirst's security interest is in this same automobile. Also assume that Dealer's fails to perfect its purchase money security interest until December 1st. Does this change the order of priority?

Reference no: EM131994050

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