The First National Bank (FNB), located in Pixley, Georgia, loaned $25,000 to Maxwell Enterprises Inc. which...

  

Transcribed Image Text:

The First National Bank (FNB), located in Pixley, Georgia, loaned $25,000 to Maxwell Enterprises Inc. which was secured by a pledge of computer equipment. Pixley requested and received a security agreement and financing statement from Maxwell but failed to file the financing statement. One month later, the First Federal Bank of Pixley (FFB) loaned $15,000 to Maxwell Enterprises Inc. which was secured by a security agreement and financing statement pledging the computer equipment as collateral. FFB recorded its financing statement in the appropriate location. Maxwell Enterprises subsequently defaulted on its repayment obligations for the loans, and both FNB and FFB attempted to take possession of the computer equipment. But what if the facts of the case were different? Select each set of facts below that could affect who is entitled to receive the computer equipment. Check All That Apply The first loan was not made by FNB but rather was credit extended by Computer World, a local technology retailer, to Melvin Maxwell personally in order to purchase the computer equipment for home use. The first loan was made by Computer World to Maxwell Enterprises Inc. in order to purchase the computer equipment for use in its business operations. Maxwell Enterprises Inc. subsequently moved its office to Alabama. FFB became informed about the move and filed a financing statement in the appropriate location in Alabama three months after Maxwell moved its office. FFB's financing statement was filed six years ago and has never been renewed through the filing of a continuation statement. The First National Bank (FNB), located in Pixley, Georgia, loaned $25,000 to Maxwell Enterprises Inc. which was secured by a pledge of computer equipment. Pixley requested and received a security agreement and financing statement from Maxwell but failed to file the financing statement. One month later, the First Federal Bank of Pixley (FFB) loaned $15,000 to Maxwell Enterprises Inc. which was secured by a security agreement and financing statement pledging the computer equipment as collateral. FFB recorded its financing statement in the appropriate location. Maxwell Enterprises subsequently defaulted on its repayment obligations for the loans, and both FNB and FFB attempted to take possession of the computer equipment. But what if the facts of the case were different? Select each set of facts below that could affect who is entitled to receive the computer equipment. Check All That Apply The first loan was not made by FNB but rather was credit extended by Computer World, a local technology retailer, to Melvin Maxwell personally in order to purchase the computer equipment for home use. The first loan was made by Computer World to Maxwell Enterprises Inc. in order to purchase the computer equipment for use in its business operations. Maxwell Enterprises Inc. subsequently moved its office to Alabama. FFB became informed about the move and filed a financing statement in the appropriate location in Alabama three months after Maxwell moved its office. FFB's financing statement was filed six years ago and has never been renewed through the filing of a continuation statement.

Answer rating: 100% (QA)

Question Solution Correct answer Maxwell Enterpri... View the full answer