Dave Batista is the owner of “The Animal’s Bar & Grill, LLC.” His
electronics are out of date and he needs some new plasma TVs for the bar area
because he likes to host large pay-per-view events. He contacts Financing Bank
and inquires about a loan. Financing Bank and Batista execute a loan and security
agreement where Financing Bank lends Batista $100,000 in exchange for Batista
granting Financing Bank a security interest in his “2007
Acura TL” and “the restaurant’s cooking stuff.” Financing
Bank promptly files a financing statement that identifies the collateral as “all
of Dave Batista’s personal property” and “all property of ‘The
Animal’s Bar & Grill.’” Batista delivered to Financing
Bank the certificate of title to his Acura. Both Dave and the Bar are now bankrupt
and the trustee is seeking to avoid Financing Bank’s interest in both the
Acura and the “restaurant’s cooking stuff.” Which of the following
is an accurate statement about Financing Bank’s security interest in the
Acura and the restaurant’s kitchen equipment?
A. Bank has a properly perfected security interest in both the kitchen equipment
and the Acura.
B. Bank has a properly perfected security interest in the kitchen
equipment. Bank has a security interest in the Acura, but it has not been properly
perfected.
C. Bank has a security interest in the kitchen equipment, but it
has not been properly perfected. Bank has a properly perfected security interest
in the Acura.
D. Bank has a security interest in both the kitchen equipment
and the Acura, but neither security interest has been properly perfected.
E. Bank has a properly perfected security interest in the Acura, but no security
interest at all in the kitchen equipment.