Applied Business Law: Thank You For Following All The Steps

Question

Applied Business Law Thank You For Following All The Stepsno Plagiaris Applied Business Law Thank you for following all the steps NO PLAGIARISM Instructional Objectives for this activity: Interpret the law of secured transactions. 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 bank's security interest attached? If so, when? These individual works should each include the following: An in-depth submission that should be free of spelling and grammar errors. An essay containing a minimum of 200 words. You will be assessed on the rationale you use in addressing the questions/issue posted, and how well you justify your argument regarding this issue. Your response must be thought provoking, have well developed ideas and/or opinions, and should reference any supporting material from the text, lecture or other sources you have used to complete the assignment. You may use your text or the internet as a reference, but remember to cite your sources according to APA guidelines.

Dr. Jack HW Helper · Accepted Answer

The security interest of First Savings Bank in Money Games Inc. (MGI) arises from their loan agreement, which is secured by MGI's accounts receivable through a security agreement. However, whether this security interest has attached without the bank filing a financing statement primarily depends on the provisions of the Uniform Commercial Code (UCC), which governs secured transactions in the United States. According to the UCC, a security interest attaches when three conditions are met: (1) the debtor (MGI) has rights in the collateral (accounts receivable); (2) the debtor signs a security agreement that sufficiently describes the collateral; and (3) the secured party (the bank) gives value. In this scenario, all three conditions are satisfied. MGI signed a security agreement describing the accounts receivable, and the bank provided the loan (value). Therefore, the security interest attaches at the moment these conditions are fulfilled, which is when MGI signs the security agreement. However, under UCC § 9-403, the security interest does not become enforceable against third parties without filing a financing statement unless certain exceptions apply. The act of filing a financing statement with the appropriate authority is what perfects the security interest against third parties. Since the bank in this case did not file a financing statement, its security interest has attached but is not perfected. This means the bank’s security interest is only enforceable against MGI and persons with prior knowledge but lacks priority over other creditors who may have filed security interests in the collateral. In conclusion, the bank’s security interest in MGI’s accounts receivable has attached as soon as the security agreement was signed and the loan was provided. However, because the bank did not file a financing statement, its security interest remains unperfected, limiting its enforceability primarily to the debtor and possibly to those with actual knowledge of the security

Applied Business Law: Thank You For Following All The Steps

Applied Business Law Thank You For Following All The Stepsno Plagiaris

Paper For Above instruction

References

Applied Business Law Thank You For Following All The Stepsno Plagiaris

Paper For Above instruction

References

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