On June 15, Harper purchased equipment for $100,000
from Imperial Corp. for use in its manufacturing process. Harper
paid for the equipment with funds borrowed from Eastern Bank.
Harper gave Eastern a security agreement and financing statement
covering Harper’s existing and after-acquired equipment.
On June 21, Harper was petitioned involuntarily into bankruptcy
under Chapter 7 of the Federal Bankruptcy Code. A bankruptcy
trustee was appointed. On June 23, Eastern filed the financing
statement. Which of the parties will have a superior security
interest in the equipment?

The trustee in bankruptcy, because the filing of the financing
statement after the commencement of the
bankruptcy case would be deemed a preferential
transfer.
The trustee in bankruptcy, because the trustee became
a lien creditor before Eastern perfected its security interest.
Eastern, because it had a perfected purchase money
security interest without having to file a financing
statement.Eastern, because it perfected its security interest within
the permissible time limits.

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