<u>Full question:</u>
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?
A. The trustee in bankruptcy, because the filing of the financing statement after the commencement of the bankruptcy case would be deemed a preferential transfer.
B. The trustee in bankruptcy, because the trustee became a lien creditor before Eastern perfected its security interest.
C. Eastern, because it had a perfected purchase money security interest without having to file a financing statement.
D. Eastern, because it perfected its security interest within the permissible time limits.
<u>Answer:</u>
Eastern parties will have a superior security interest in the equipment because it perfected its security interest within the permissible time limits.
<u>Explanation:</u>
Eastern has a higher security interest because Eastern amended its security interest inside the allowable time deadlines. A perfected security interest in any security interest in an asset that cannot be demanded by any other party.
Below the Uniform Commercial Code (U.C.C.), to perfect a security interest, a lender has 10 days from the date of the sale of material to perfect the security interest by filing a financing statement. Possessing registered in the 10-day limit, Eastern has a strong perfected security interest in the material and after-acquired things even though the bankruptcy was recorded two days ahead.
Answer:
Press a standard key on the keyboard.
Move the mouse.
Explanation:
Answer:
A
Explanation: The Securities and Exchange Commission
Answer:
Graphic Designs
The firm will have to pay $6.40 per share next quarter.
Explanation:
a) Data and Calculations:
Number of cumulative preferred stock outstanding = 68,000
Preferred dividends per share = $1.60 per quarter
For four quarters, the preferred dividends per share = $6.40 ($1.60 * 4)
b) This will take care of the past three quarters that have accumulated and the fourth quarter. Note that when a company wishes to pay a common stock dividend, it must pay the cumulative preferred dividends first, no matter the length of period that the dividends have accumulated.
