Jet immediately filed the financing statement. On July 1, Roe filed for bankruptcy. Under the…


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Jet immediately filed the financing statement. On July 1, Roe filed for bankruptcy. Under the… 1 answer below » On April 1, Roe borrowed $100,000 from Jet to pay Roe’s business expenses. On June 15, Roe gave Jet a signed security agreement and financing statement covering Roe’s inventory. Jet immediately filed the financing statement. On July 1, Roe filed for bankruptcy. Under the federal Bankruptcy Code, can Roe’s trustee in bankruptcy set aside Jet’s security interest in Roe’s inventory? Yes, because a security agreement may only cover goods actually purchased with the borrowed funds. Yes, because Roe giving the security interest to Jet created a voidable preference. No, because the security View complete question » On April 1, Roe borrowed $100,000 from Jet to pay Roe’s business expenses. On June 15, Roe gave Jet a signed security agreement and financing statement covering Roe’s inventory. Jet immediately filed the financing statement. On July 1, Roe filed for bankruptcy. Under the federal Bankruptcy Code, can Roe’s trustee in bankruptcy set aside Jet’s security interest in Roe’s inventory? Yes, because a security agreement may only cover goods actually purchased with the borrowed funds. Yes, because Roe giving the security interest to Jet created a voidable preference. No, because the security interest was perfected before Roe filed for bankruptcy. No, because the loan proceeds were used for Roe’s business. View less » Jul 08 2014 12:35 PM

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