Nelson borrowed money from Solvent National Bank and gave the bank a security interest in her…

Nelson borrowed money from Solvent National Bank and gave the bank a security interest in her business equipment, both present and after-acquired. She later borrowed money from Resilient Savings and Loan to purchase additional business equipment.

Three weeks after Nelson purchased the new equipment and took possession of it, an employee of Resilient discovered the bank’s filed financing statement concerning the bank’s loan to Nelson. Resilient immediately recorded a financing statement, so as to perfect its purchase money security interest in the equipment. Nelson then defaulted on the obligation owed to the bank and on the obligation owed to Resilient. Who has the first priority security interest in the equi9pment purchased by Nelson with the funds borrowed from Resilient?

A. Solvent National Bank. B. Resilient. C. both have equal priority. D. none of the above.

 

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