Ginnie of Ginnie's Gems purchased inventory for her jewelry store from Tristar Gold through a credit arrangement. Ginnie signed a security agreement with Tristar Gold on May 10, 2018. The security interest was given in her inventory. On May 3, 2018, Ginnie had obtained a line of credit with Bank of the East for the purchase of additional inventory. The inventory was being purchased from Gold Reflections and was a series of specially designed pieces that Gold Reflections would be manufacturing. The pieces were finished on May 31, 2018. Which of following statements is correct?
A. Tristar's security interest attached before Bank of the East's security interest.
B. Bank of the East's security interest attached on May 3.
C. Bank of the East's interest attached first because its interest covered specific goods and was not general inventory.
D. There cannot be two security interests in the same collateral, and the second one (Tristar) is void.
A. Tristar's security interest attached before Bank of the East's security interest.
You might also like to view...
What are some of the fears held by employers regarding employment of disabled persons? Describe the actual realities associated with such fears
What will be an ideal response?
The first report printed before closing the end of the period, which is then reviewed so you can do a final account balance check before printing financial statements, is called the:
A) Trial Balance. B) General Ledger. C) Income Statement. D) Balance Sheet.