Carter construction got a construction project loan from Luxor bank, secured by Carter's state of the art equipment. Luxor duly perfected its security interest by filing a financing statement covering Carter Construction's "equipment, now-owned or after-acquired." A few months later, Carter Construction purchased a Seismic Earthmover excavator on credit from Normous Machines, who duly filed its own financing statement the day after delivery. If Carter Construction runs into problems, which creditor will have priority in the Seismic Earthmover. Explain. (b) For this question, assume Carter Construction, short of cash, sold the Seismic Earthmover to Great Wall Construction, who paid the market price for such a machine, in good faith, with no knowledge of the security interests of Normous Machines and Luxor Bank. Does Great Wall Construction take the machine free of the creditors's security interests (in other words, if Carter defaults on its loans with Luxor or Normous, would those creditors have the ability to repossess the Earthmover from Great Wall)? Why or why not

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a In the scenario provided Luxor Bank holds a security interest in Carter Constructions equipment including the Seismic Earthmover after filing a fina... View the full answer