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Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson
Edition 19ISBN: 978-1305654921Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson
Edition 19ISBN: 978-1305654921 Exercise 2
In order to secure $1.5 million in loans from Fifth Third Bank (Fifth), Odle, McGuire Shook (OMS) signed a security agreement giving Fifth a security interest in all its assets, including any deposit accounts it had with Fifth. Fifth perfected its security interest by filing a financing statement with the secretary of state. OMS defaulted on its loans but continued to conduct business, and Fifth honored checks that OMS drew on its account with Fifth. OMS also defaulted on a lease with People's National Bank (PNB), so PNB sued and obtained a judgment for over $60,000. To collect its judgment, PNB tried to attach any funds of OMS in accounts at Fifth. Fifth alleged that since it had perfected its security interest in OMS's accounts before PNB got a judgment against OMS, Fifth's security interest had priority over PNB's judgment lien. Did it?
Explanation
Verified
Verified
Security Interest:
Under UCC 9-203 , th...
Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson
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