Bob's Builders, Inc., ("BBI") is an Illinois corporation engaged in a small home construction business. In December 2001, BBI borrowed $500 from Travis and promised to repay it in six months. BBI gave Travis BBI's portable cement mixer to hold until the loan was repaid. Travis has possession of the cement mixer.

On January 5, 2002, BBI borrowed $5,000 from Bank to finance a new job BBI had undertaken. BBI signed a promissory note and security agreement giving Bank a security interest in "all of BBI's equipment now owned or hereafter acquired." At the time, BBI owned the cement mixer and sundry construction tools. On the same day, Bank properly perfected its security interest by filing a financing statement with the Illinois Secretary of State.

On March 5, 2002, BBI reorganized and changed its name to House Levelers, Inc. ("HLI"), an Illinois corporation. At the same time, it filled out the necessary paper work and changed the name on its checking account at Bank from BBI to HLI.

On April 5, 2002, HLI purchased some new drilling equipment on credit from Drillco. HLI gave Drillco a promissory note and a security agreement covering the drilling equipment. Drillco properly perfected its security agreement on April 6, 2002 by filing a financing statement with the Illinois Secretary of State.

On July 10, 2002, HLI purchased a used grinding machine on credit from Grindco. HLI gave Grindco a promissory note and a security agreement covering the grinding machine. However, Grindco failed to file a financing statement.

It is now July 15, 2002, and HLI cannot pay its bills.

As among Travis, Bank, Drillco, and Grindco, which creditor's security interest, if any, has priority in the following items:

The portable cement mixer? Explain fully.
The drilling equipment? Explain fully.
The grinding equipment? Explain fully.

Answer rating: 100% (QA)

As of July 15 2002 the priority of the creditors security interests in the following items would be ... View the full answer