Essay
First Bank loans Lila $1,500 so that she may purchase a computer for her office secretary.Lila signs a financing statement,which First Bank duly files within twenty days.After Lila purchases the computer,she takes out a loan at Valley Bank,gives the computer as collateral,and signs a financing statement,which Valley Bank then duly files.Her secretary never uses the computer,so Lila puts an ad in the paper and sells the computer to Angie.If Lila defaults on the loans,whose interest in the computer has priority? Explain,using correct terminology.
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First Bank has priority,because it was t...View Answer
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Correct Answer:
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