Which of the following was the result In Re Tower Air Inc.,the case in the text in which a debtor made repairs to an aircraft used as collateral without claiming available insurance proceeds,later filed bankruptcy,and the bankruptcy trustee and the creditor each claimed entitlement to the insurance proceeds?
A) The court ruled in favor of the bankruptcy trustee on the basis that regardless of whether or not repairs were made, the right to claim the proceeds belonged to the debtor; and the trustee succeeded to the rights of the debtor.
B) The court ruled in favor of the bankruptcy trustee on the basis that because the debtor had already repaired the collateral, the trustee was entitled to the proceeds of the insurance policy.
C) The court ruled in favor of the bankruptcy trustee on the basis that the trustee made first claim to the insurance proceeds and already had the proceeds in possession when the creditor first claimed entitlement to them.
D) The court ruled that the creditor was entitled to the full insurance proceeds, without consideration of the amount of the debt, on the basis that it had a secured interest.
E) The court ruled that the creditor was entitled to the proceeds of the insurance policy up to the amount of the debt on the basis that it had a secured interest.
Correct Answer:
Verified
Q24: Which of the following is true under
Q27: When a debtor sells collateral,he or she
Q28: Under the UCC,a secured party's interest in
Q29: Once a financing statement has been filed
Q30: According to the UCC,which of the following
Q33: Which of the following is defined as
Q35: Which of the following is true regarding
Q38: Which of the following is true regarding
Q55: Which of the following is an amendment
Q59: Which of the following is true regarding
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents