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Unformatted text preview: is a California corporation, incorporated on October 1, 1992. At all
times relevant to this question, SellsIt was in the business of marketing and selling
computers and other electronic devices.
Assume that Bank B has a properly attached and perfected security interest in the
following property owned by SellsIt to secure all past obligations and future advances:
existing and after-acquired inventory and equipment.
Bank B filed its financing statement on December 1, 2000 and made its first advance on
December 15, 2000. The parties signed the security agreement on December 15, 2000.
Bank B timely filed all necessary continuation statements.
As of today, December 4, 2011, SellsIt owes Bank B $125 million.
Bank B’s security agreement stated: “SellsIt may sell inventory in the ordinary course of
business free and clear of Bank B’s security interest provided that all proceeds of
inventory sales are deposited immediately with Bank B”
Due to decreasing sales, SellsIt decided to close one of its three retail locations (Store...
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