Question

On May 8, Dome filed a financing statement that adequately identified the collateral. On June 9, Tint sold one computer to Bean for personal use and four computers to Green Co. for its business. Which of the following is correct?

A. The computer sold to Bean will riot be subject to Dome's security interest
B The computers sold to Green will be subject to Dome's security interest
C. The security interest cloes rnot include the prioceeds from the sale of the.computers to Green
D. The security interest muy not cover after-acquired property evenif the parties agree 2 pts

Answer 1

Answer: A. The computer sold to Bean will not be subject to Dome's security interest

Step-by-step explanation:

The computers sold to Bean have passed ownership from Tint to Bean and so cannot be subject to whatever agreements Tint had with Dome Bank because those agreements were contingent on Tint owning the computers.

For instance, if you buy a car from a dealership which had acquired those cars by using loans from a bank, you are not liable to pay the interest on the loan that the dealership took to buy the car.