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You represent Diamond Head National Bank, which holds a first security interest against some mobile equipment owned by Henry Walker, financing statement against Walker in the state of his principal residence. securing a debt in the amount of $270,000. The bank perfected by filing a Walker is current on his payments. Diamond Head considers the loan safe because, even at a sheriff's auction sale, the bank is confident the equipment would bring at least $400,000. From friends at the Club, you have heard that Walker is in financial difficulty and the holder of some kind of second lien is forcing a sale of the equipment. a. If this information is correct, is there any reason for Diamond Head to be concerned? UCC §§9-611(c)(3), 9-617(b), 9-625(b). b. Can Diamond Head protect its position by purchasing the equipment at the sale? UCC §9-615(a). c. Can Diamond Head prevent the sale? UCC §§9-609(a), 9-401. d. Assuming that the creditor forcing this sale was an Article 9 secured party, was Diamond Head entitled to receive notice of this sale? UCC §9-611 and Comment 4 to that section. You represent Diamond Head National Bank, which holds a first security interest against some mobile equipment owned by Henry Walker, financing statement against Walker in the state of his principal residence. securing a debt in the amount of $270,000. The bank perfected by filing a Walker is current on his payments. Diamond Head considers the loan safe because, even at a sheriff's auction sale, the bank is confident the equipment would bring at least $400,000. From friends at the Club, you have heard that Walker is in financial difficulty and the holder of some kind of second lien is forcing a sale of the equipment. a. If this information is correct, is there any reason for Diamond Head to be concerned? UCC §§9-611(c)(3), 9-617(b), 9-625(b). b. Can Diamond Head protect its position by purchasing the equipment at the sale? UCC §9-615(a). c. Can Diamond Head prevent the sale? UCC §§9-609(a), 9-401. d. Assuming that the creditor forcing this sale was an Article 9 secured party, was Diamond Head entitled to receive notice of this sale? UCC §9-611 and Comment 4 to that section.
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Answer a If this information is correct is there any reason for Diamond Head to be concerned No Diamond Head should not be concerned If the equipment ... View the full answer
Related Book For
Accounting Information Systems basic concepts and current issues
ISBN: 978-0078025334
3rd edition
Authors: Robert Hurt
Posted Date:
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