Fact Pattern 30-2A

Fact Pattern 30-2A
Rely Credit Company loans Standard Manufacturing Company $50,000 and takes a se?curity interest in the equipment that Standard buys with the money and receives on July 1. Standard files for bankruptcy on July 12.
-Refer to Fact Pattern 30-2A. If Rely perfects its security interest be?fore Standard files for bankruptcy, then Rely will be a secured credi?tor and the trustee of Standard's estate can

A) invalidate Rely's interest only after Reliable perfects it.
B) invalidate Rely's interest only if Rely knew of the impend?ing bankruptcy.
C) invalidate Rely's interest under any circumstances.
D) not invalidate Rely's interest.

Correct Answer:

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