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Question
Fact Pattern 30-2Reliable Credit Company loans Standard Manufacturing Company $50,000 and takes a security interest in the equipment that Standard buys with the money and receives on July 1. Standard files for bankruptcy on July 12.Refer to Fact Pattern 30-2. If Reliable does not perfect its security interest before Standard files for bankruptcy, then Reliable will be an unsecured creditor and the trustee of Standard's estate can
a. invalidate Reliable's interest only before Reliable perfects it.
b. invalidate Reliable's interest only if the firm knew of the impending bankruptcy.
c. invalidate Reliable's interest under any circumstances.
d. not invalidate Reliable's interest.
Answer
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