Question: Julie borrowed $ 1 , 0 0 0 from a pawnshop, which required that she leave a diamond ring with the pawn shop as collateral
Julie borrowed $ from a pawnshop, which required that she leave a diamond ring with the pawn shop as collateral to secure repayment of the loan. Julie signed a note promising to repay the loan and a security agreement pledging the diamond ring as collateral. Later, Julie borrowed $ from the bank. She signed a note and security agreement giving the bank a security interest in the same ring; and the bank filed a financing statement. If Julie defaults on both loans, who has superior rights to the ring?
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