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Determine Priority Of Security Interests Practice Test
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Q1
On August 1, 20X1, ElectronicsStore (debtor) granted Bank Secured a security interest in all inventory and perfected by filing on August 1. On September 5, 20X1, ElectronicsStore sold a television from inventory to Buyer Y, who purchased in good faith from ElectronicsStore’s showroom as part of its ordinary retail operations. After default on September 20, Bank Secured sought to repossess the television from Buyer Y. Under Uniform Commercial Code Article 9, who holds the superior claim to the television?
On August 1, 20X1, ElectronicsStore (debtor) granted Bank Secured a security interest in all inventory and perfected by filing on August 1. On September 5, 20X1, ElectronicsStore sold a television from inventory to Buyer Y, who purchased in good faith from ElectronicsStore’s showroom as part of its ordinary retail operations. After default on September 20, Bank Secured sought to repossess the television from Buyer Y. Under Uniform Commercial Code Article 9, who holds the superior claim to the television?