Question
Assume you are an attorney hired by Central Bank (Bank) to advise on the following.
Bank’s customer, Electronic Magic, Inc, (Magic) an electronics goods retailer, plans to open a new store. Magic has applied for a loan with Bank to pay for inventory for the new store. Magic’s store inventory will be purchased monthly from suppliers, then moved out through store sales continuously.
Bank wants to secure the loan by creating a security interest in Magic’s store inventory.
1. Explain a security interest. (1-2 paragraphs)
2. What advice would you give the bank on using the inventory to secure the loan? (2-3 paragraphs)
3. What are the requirements under Article 9 of the UCC to create and perfect the security interest? (2-3 paragraphs)
*Must use in text citations
*Can only use: The Wall Street Journal or MAJOR metropolitan newspapers, i.e., The Washington Post, The New York Times, They Chicago Tribune, The LA Times, etc.
Business periodicals, i.e., Business Week, Forbes, The Economist
Law school law review journals
Business law journals
Additional Requirements
Min Pages: 2
Level of Detail: Show all work