Careful Bank and Carefree Bank both have loans to Middlemarch Industries, secured by Middlemarch Industries' equipment and inventory. Carefree Bank made its loan and security agreement first but did not bother filing a financing statement. Careful Bank knew about the secured loan from Carefree Bank. It went ahead with a security agreement and loan, and duly filed a financing statement. Middlemarch Industries has financial problems. Which bank has priority in the equipment and inventory?

Answer rating: 100% (QA)

In this case Careful Bank would likely have priority over Carefree Bank ... View the full answer