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Middle Bank should do as a practical matter. Explain your reasoning. Be specific. EXAM QUESTIONS -- PAGE 2 OF 5 Question Two (200 points)
Suggested Time: 120 minutes
MakesIt Corporation is a California corporation, incorporated on October 1, 1985. At all
times relevant to this question, MakesIt was in the business of designing and
manufacturing computers and other electronic devices.
Assume that Bank A has a properly attached and perfected security interest in the
following property owned by MakesIt to secure all past obligations and future advances:
existing and after-acquired inventory and equipment.
Bank A filed its financing statement on December 1, 2002 and made its first advance on
December 15, 2002. The parties signed the security agreement on December 15, 2002.
Bank A timely filed all necessary continuation statements.
As of today, December 4, 2011, MakesIt owes Bank A $590 million.
Bank A’s security agreement stated: “MakesIt may sell inventory in the ordinary course
of business, proceeds to be deposited with Bank A”
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This document was uploaded on 03/20/2014 for the course LAW 803B at Golden Gate.
- Fall '