4. Assume that Mary defaulted on her obligation to ABC but made one late payment to the bank in December. Would this payment have any effect on the priority of the secured creditors? Why or why not?
5. Assume Mary did not file Bankruptcy. Mary just closed the store and walked away. The secured creditors had an auction of the remaining inventory and fixtures.
Also, assume Community Bank forgot to perfect its interest by not filing The UCC 1 Form with the NC Secretary of State. Who has priority in the proceeds of the sale of the inventory? Who has priority in the proceeds of the sale of the fixtures?
6. Discuss preferential and fraudulent transfers in general . This question has no relationship to the above scenario.
Discuss preferential and fraudulent transfers in general .
