View the step-by-step solution to: Problem # 1 You are the chief executive officer of Money Games

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Problem # 1

You are the chief executive officer of Money Games Inc.(MGI), which has begun to market Borrow & Spend, a video game set in the world of finance. To buy ads, MGI borrows $50,000 from First Savings Bank. On MGI's behalf, you sign a note for the loan and offer its accounts receivable as collateral. You sign a security agreement that describes the collateral. The bank does not file a financing statement.

Has the banks security interest attached?
If so, when?

***An essay containing a minimum of 200 words.***
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Problem #2

In the video game Fun with Fund$, the goal is to correctly calculate debt, identify the debtors assets, prioritize the creditors interests, and accurately balance these categories to come to a financial resolution. In one segment, Agile Corporation borrows $1 million from Hi Finance Company (HFC).

Agile signs a financing statement that describes the collateral, its inventory and proceeds, and HFC files the statement in the appropriate state office. Using the same collateral, Agile later borrows $500,000 from Metro Bank, which files its financing statement. Agile defaults on the loans. Metro claims that at the time of its loan it was unaware of HFCs interest. Between these parties, who has priority to the collateral? Discuss your answer.


***An essay containing a minimum of 200 words.***
________________________________________________________




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