Acme Widget Company Grants to the Empire Bank on January

Acme Widget Company grants to the Empire Bank on January 15,2002,a debenture over all fixed assets and chattels of the company.The terms of the debenture are such that it represents a security interest in all present and future assets and chattels of the company.On April 12,2003,Acme purchases an advanced widget press and executes a chattel mortgage in favour of Downtown Finance Company in the amount of the purchase price of the press.In December 2003,Acme falls on hard financial times and a receiver is appointed under the terms of the debenture.The receiver realizes on all fixed assets of the company,converting them to cash,including the advanced widget press.The chattel mortgagee brings suit against the receiver for conversion of the press.Discuss the priorities,and the nature of the claims of both the Empire Bank and Downtown Finance Company with respect to the advanced widget press or the funds realized from its sale.