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Anonymous asked in Business & FinanceCareers & EmploymentLaw & Legal · 9 years ago

Need Help with Business Law Question!!!?

In 2002, Michael Sabol, doing business in the recording industry as Sound Farm Productions, applied to Morton Community Bank in Bloomington, Illinois, for a $58,000 loan to expand his business. Besides the loan application, Sabol also signed a letter that stated, “the undersigned does hereby authorize Morton Community Bank to execute, file and record all financing statements, amendments, termination statements, and all other statements authorized by Article 9 of the Illinois Uniform Commercial Code, as to any security interest.” Sabol did not sign any other documents, including the financing statement, which did, however, contain a description of the collateral. Less than three years later, without having repaid the loan, Sabol filed a petition in a federal bankruptcy court to declare bankruptcy. The bank claimed a security interest in Sabol’s sound equipment. What are the elements of an enforceable security interest? What are the requirements of each of those elements? Does the bank have a valid security interest in this case? Explain.

1 Answer

  • Brad H
    Lv 7
    9 years ago
    Favorite Answer

    You posted this in the wrong section. We don't do homework in this section.

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