Ted wants to start a candy shop and needs money. He talks with Quincy and Gillian separately, and each agrees to loan funds to Ted. The two do not know that the other is loaning him money. He gives each a security interest in the business. Each has filed a financing statement with the proper agency. When Ted fails to make payments and Quincy and Gillian both seek to sell the shop in order to be paid, the one who has first priority is the one who:

Question

Social Studies

Sebastian Cooper

2 April, 03:29

Ted wants to start a candy shop and needs money. He talks with Quincy and Gillian separately, and each agrees to loan funds to Ted. The two do not know that the other is loaning him money. He gives each a security interest in the business. Each has filed a financing statement with the proper agency. When Ted fails to make payments and Quincy and Gillian both seek to sell the shop in order to be paid, the one who has first priority is the one who:

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Answers (1)

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Goon · Answer 1

Answer: Filed first

Explanation:

Financing statement is the document that gets recorded officially with filing date and assignment of filing number that contains claim of lender to the assigned collateral.

According to the question, if Ted is unable to make payment of loan to Gillian and Quincy then as per legal proceeding the person who filed the financing statement first will get the opportunity to sell the shop for regaining the debt amount.