A Report On Finance Co

863 WordsNov 2, 20154 Pages
1. Attachment a. Finance Co. has a security interest in the bikes A security interest attaches when (1) there is an agreement, (2) Debtor grants a security interest in movable property,(2) debtor had the rights in the property, (3) value is given and (4) there is an authenticated security agreement that describes the collateral . (1) Here, financing had agreed to grant working capitol to Mikes Bikes. (2) Mike’s Bikes as owner of the bikes has rights in the property. (3) Finance gave value when they granted Mikes Bikes $250,000 in working capitol. (4) The agreement Finance sent to Mike’s Bikes qualifies as a security agreement. This because it grants a security interest in the bikes. It adequately describes the bikes as inventory. Even though the fact pattern refers to it as personal property it is not because the property is held in the trade of business. The bikes are inventory because they are held by the debtor for sale to consumers. The security agreement is authenticated by the electronic signature of the debtor in the reply email. This is because multiple documents that are attached to each other can qualify as a security agreement. Finance’s security interest would still attach to the bikes acquired after March 1, 2015 even though there security agreement did not contain the terms or henceforth acquired. This is because it is assumed that a secured party would understand that inventory would be sold and replenished and would therefore, take a security
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