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Vitek1552 [10]
3 years ago
8

Great State Bank loans money to Seth, securing the loan with property owned by Seth. Great State Bank is advised by its attorney

to file a financing statement. Great State Bank doesn't understand why it should spend the extra money for this filing, since Seth has told them that he has no other creditors. Why should Great State Bank file a financing statement?
Social Studies
2 answers:
Serggg [28]3 years ago
7 0

Answer: A financing statement will protect Great State priority right with other creditors by giving a notice to other creditors that it claims a security interest in the collateral.

Explanation: A financing statement could be defined as a legal document filed by a creditor or lender showing information security interest in collateral used to secure a debt. It is also used to notify other creditors or lenders of the security interest.

Thus, from the scenario above, the step Great State bank was advised to take by it's attorney is to protect Great State priority right with other possible lenders, as the financing statement will notify them that Great States Bank possess a security interest in the collateral.

zhenek [66]3 years ago
3 0

Answer: To protect Priority rights

Explanation:

The financing statement will protect great states priority rights with other creditors by giving notice to other creditors that it claims a security interest in the collateral.

In patent, a priority right or right of priority is a time-limited right, triggered by the first filing of an application for a patent. The right of priority belongs to the applicant or his successor in title.

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