Question: help please Secured Transactions Michael and Debra Brown, doing business as D&M Enterprises, Inc., bought a retail electronics store under a franchise agreement from a
Michael and Debra Brown, doing business as D\&M Enterprises, Inc, bought a retal electronics store under a franchise agreement from a national company, Rodio Hut. The Browns borrowed from State Bank to pay for the business and signed loan documents and a financing statement, which identified the Browns as "Debtors.' Elsewhere on the financing statement, the bank identified "O\&M Enterprises, Inc, Radio Hut, Debra K. Brown, Michael C. Brown' as 'Debtors." The statement covered, in part, the store inventory. The bank flied the financing statement with the proper government agency. Three years later, the store closed. Radio Hut terminated the franchise and took possession of the inventory, claiming the Browns and D\&M owed. Padio Hut $6,394,73. State Bank fled a suit in a state court against Radio Hut, daiming a perfected security interest in the inveritory with priority over Radio Hur's claim. Did the bank's security interest take oriority over Radio Hut's claim? 1. The borrower in this scenario is
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
