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Question
Fact Pattern 29-2General Leasing Company (GLC) buys equipment for use as inventory, borrowing $1 million from Helpful Finance Corporation for a security interest in the equipment. The next day, GLC borrows $500,000 from Interstate Bank, also for a security interest in the equipment. Two weeks after GLC takes possession of the equipment, Helpful and Interstate file financing statements, with Interstate filing first. GLC defaults on the loans.Refer to Fact Pattern 29-2. Suppose that Helpful perfects its security interest when GLC takes possession of the equipment. In that circumstance, under the result in Case 2, In re Rebel Rents, Inc., the party with priority to the collateral on GLC's default would be
a. GLC.
b. Helpful and Interstate proportionately.
c. Helpful only.
d. Interstate only.
Answer
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