Alpha Bank filed a UCC Financing Statement on December 1, 2015 giving the bank a first...
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Alpha Bank filed a UCC Financing Statement on December 1, 2015 giving the bank a first lien the borrower's collateral ($600,000 of machinery) and was good for five years. Beta Bank filed a UCC Financing Statement on December 1, 2016 giving the bank a second lien on the $600,000 of machinery and was good for five years. Bob works at Alpha Bank and is responsible for filing Financing Statement Amendments (aka continuation statements). Bob forgets to file the amendment by December 1, 2020 for this specific borrower so Alpha Bank loses it first lien on the collateral. Alpha Bank has a lien on the collateral, but not a first lien. The borrower declared bankrupt in February 2021 and sold the $600,000 of equipment to pay down his debt. The borrower has only two debts outstanding: $500,000 owed to Alpha Bank and $500,000 owed to Beta Bank. a. What were the loan losses for Alpha Bank and Beta Bank, respectively? b. What should have been the penalty for Bob, who forgot to file the continuation statement? T Alpha Bank filed a UCC Financing Statement on December 1, 2015 giving the bank a first lien the borrower's collateral ($600,000 of machinery) and was good for five years. Beta Bank filed a UCC Financing Statement on December 1, 2016 giving the bank a second lien on the $600,000 of machinery and was good for five years. Bob works at Alpha Bank and is responsible for filing Financing Statement Amendments (aka continuation statements). Bob forgets to file the amendment by December 1, 2020 for this specific borrower so Alpha Bank loses it first lien on the collateral. Alpha Bank has a lien on the collateral, but not a first lien. The borrower declared bankrupt in February 2021 and sold the $600,000 of equipment to pay down his debt. The borrower has only two debts outstanding: $500,000 owed to Alpha Bank and $500,000 owed to Beta Bank. a. What were the loan losses for Alpha Bank and Beta Bank, respectively? b. What should have been the penalty for Bob, who forgot to file the continuation statement? T
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Business Law Principles for Today's Commercial Environment
ISBN: 978-1305575158
5th edition
Authors: David P. Twomey, Marianne M. Jennings, Stephanie M Greene
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