Ben has recently inherited a painting by Monet.  Excited about his good fortune he hires Bob Villa to remodel his home.  The bill from Bob Villa is $30,000.  Ben pays Bob with a promissory note for $30,000 payable on Jan. 1, 2023.  Bob is aware that Ben is unemployed and has a poor credit history so he has Ben sign a security agreement which pledges the Monet as collateral for the promissory note. Bob then immediately files a financing statement at the courthouse.  A week later, Ben decides to have a party in his newly remodeled house but is a little short of cash. To cover the cost of the party Ben borrows $5000 from his elderly Aunt Clara.  Ben has borrowed money from Clara in the past and failed to repay it so this time Clara has Ben sign a security agreement which pledges the Monet as collateral for the repayment of the loan.  At his party Ben asks his girlfriend to marry him and she agrees.  The next day they go shopping for an engagement ring. They find the perfect ring at I.J.Gems.  Ben buys the ring on credit.  The cost of the ring is $12,000.  I.J. Gems requires that Ben sign a security agreement which pledges the Monet as collateral for the credit purchase and then takes possession of the Monet.  A week later Ben's fiancé runs off with the drummer from the band he hired to play at his party, taking the ring with her.  Ben fails to pay any of his creditors and on Jan. 1 Bob Villa forecloses on the Monet.
1. How many security interests have attached to Ben's Monet?
2.  Whose security interest was first to attach?
3.  How many of the security interests have been perfected?
4.  Whose security interest was first to be perfected?
Assuming that the Monet was sold to pay Ben's debts.  There are no costs associated with the sale or repossession of the painting. The Monet is sold for $40,000.
5.  How much would Bob Villa receive from the sale?

6.  How much would Aunt Clara receive?

7.  How much would I.J.Gems receive?

Answer rating: 100% (QA)

1 Three security interests have attached to Bens Monet They are a The security interest created by B... View the full answer