Fourthbank lent $50,000 to Mary,and took a security interest in 1,000 shares of Mary's stock in Specialized Motors.The bank took possession of the stock certificates.Mary then borrowed $20,000 from her brother,and signed a security agreement with her brother.Her brother immediately filed a financing statement.If the stock is worth $60,000 and Mary defaults on both loans,what is the outcome?
A) Fourthbank gets $50,000 and her brother gets $10,000.
B) Fourthbank gets $40,000 and her brother gets $20,000.
C) Fourthbank and her brother split the proceeds in a 5:2 ratio.
D) Her brother gets $20,000 and Fourthbank gets nothing.
E) Fourthbank gets $50,000 and her brother gets nothing.
Correct Answer:
Verified
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