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The Following Series of Events/transactions Occurred on Bert Easley's Ranch

Question 79

Multiple Choice

The following series of events/transactions occurred on Bert Easley's ranch:
March 3, 2016 - Bert buys the ranch for $900,000; gives a mortgage to First Interstate Bank (FIB) to secure the loan
April 12, 2018 - Bert gives First Federal (FF) a new mortgage (lower rate) ; FF pays off the FIB loan balance
August 17, 2020 - Bert installs wind power equipment and signs a security agreement with WP3 (the wind power seller) ; WP3 does not record a financing statement
If Bert defaults, what is the order of the creditor priorities?


A) FIB, FF, WP3
B) WP3, FF
C) WP3, FIB, FF
D) FF, WP3

Correct Answer:

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