1 Secured Transactions Assignment 29 Lienors vs. Secured Creditors: Future Advances

2 The Big Picture Part Two: The Creditor Third Party Relationship Chapter 9: Competitions for Collateral Assignment 28: Lien Creditors vs. Secureds: The Basics Assignment 29: Lien Creditors vs. Secured: Future Advances Assignment 31: Preferences Assignment 32: Secured Creditors vs. Secured Creditors Assignment 36: Buyers vs. Secured Creditors Land, Fixtures, Agriculture, and Minerals

3 Definitions “Advance” means payment of money to borrower as a loan

4 Definitions “Advance” means payment of money to borrower as a loan “Future advance” means an advance made after (1) the initial advance or (2) the note and security agreement are signed.

5 Definitions “Advance” means payment of money to borrower as a loan “Future advance” means an advance made after (1) the initial advance or (2) the note and security agreement are signed. “Non-advance” means an amount that was not advanced to the borrower, but that the borrower is obligated to pay

6 Definitions “Advance” means payment of money to borrower as a loan “Future advance” means an advance made after (1) the initial advance or (2) the note and security agreement are signed. “Non-advance” means an amount that was not advanced to the borrower, but that the borrower is obligated to pay Interest

7 Definitions “Advance” means payment of money to borrower as a loan “Future advance” means an advance made after (1) the initial advance or (2) the note and security agreement are signed. “Non-advance” means an amount that was not advanced to the borrower, but that the borrower is obligated to pay Interest Attorneys fees incurred in collection

8 Definitions “Advance” means payment of money to borrower as a loan “Future advance” means an advance made after (1) the initial advance or (2) the note and security agreement are signed. “Non-advance” means an amount that was not advanced to the borrower, but that the borrower is obligated to pay Interest Attorneys fees incurred in collection Other expenses of the loan paid to third parties

9 Priority Rules General rule (UCC and Real Estate law): All advances and non- advances have the same priority. Shutze v. Credithrift.

10 Priority Rules General rule (UCC and Real Estate law): All advances and non- advances have the same priority. Shutze v. Credithrift. UCC exception: Future advances have priority over intervening liens only if made: 1. Within 45 days after lienor “became a lien creditor”

11 Priority Rules General rule (UCC and Real Estate law): All advances and non- advances have the same priority. Shutze v. Credithrift. UCC exception: Future advances have priority over intervening liens only if made: 1. Within 45 days after lienor “became a lien creditor” 2. Without knowledge of the lien, or

12 Priority Rules General rule (UCC and Real Estate law): All advances and non- advances have the same priority. Shutze v. Credithrift. UCC exception: Future advances have priority over intervening liens only if made: 1. Within 45 days after lienor “became a lien creditor” 2. Without knowledge of the lien, or 3. Pursuant to commitment entered into without knowledge of the lien

13 Priority Rules General rule (UCC and Real Estate law): All advances and non- advances have the same priority. Shutze v. Credithrift. UCC exception: Future advances have priority over intervening liens only if made: 1. Within 45 days after lienor “became a lien creditor” 2. Without knowledge of the lien, or 3. Pursuant to commitment entered into without knowledge of the lien Real estate exception (minority rule): Future advances have priority over intervening liens only if made: 2. Without knowledge of the lien, or 3. Pursuant to commitment without knowledge of the lien.

14 Priority Rules Non-advances (real and personal property exceptions): A non- advance has the priority of the advance to which it relates

15 Uni Imports v. Exchange “The marshal’s service served the writ on Exchange, but Exchange refused to turn over any of Aparcor’s assets, contending that it had priority status.” Page 482.

16 Uni Imports v. Exchange “The marshal’s service served the writ on Exchange, but Exchange refused to turn over any of Aparcor’s assets, contending that it had priority status.” Page 482. How can Exchange bank refuse to permit a levy?

17 Uni Imports v. Exchange “The marshal’s service served the writ on Exchange, but Exchange refused to turn over any of Aparcor’s assets, contending that it had priority status.” Page 482. How can Exchange bank refuse to permit a levy? Page 9: “An officer may force an entry into any enclosure except the dwelling house of the judgment debtor in order to levy... on the debtor’s goods....”

18 Uni Imports v. Exchange “The marshal’s service served the writ on Exchange, but Exchange refused to turn over any of Aparcor’s assets, contending that it had priority status.” Page 482. How can Exchange bank refuse to permit a levy? Page 9: “An officer may force an entry into any enclosure except the dwelling house of the judgment debtor in order to levy... on the debtor’s goods....” Page 8. “The sheriff’s duty is to execute the writ according to the plaintiff’s instructions.

19 Uni Imports v. Exchange “The marshal’s service served the writ on Exchange, but Exchange refused to turn over any of Aparcor’s assets, contending that it had priority status.” Page 482. How can Exchange bank refuse to permit a levy? Page 9: “An officer may force an entry into any enclosure except the dwelling house of the judgment debtor in order to levy... on the debtor’s goods....” Page 8. “The sheriff’s duty is to execute the writ according to the plaintiff’s instructions. The writ is in the ‘exclusive control’ of the judgment creditor; the sheriff must follow the creditor’s reasonable instructions regarding the time and manner of making the levy....”

20 Uni Imports v. Exchange “The marshal’s service served the writ on Exchange, but Exchange refused to turn over any of Aparcor’s assets, contending that it had priority status.” Page 482. How can Exchange bank refuse to permit a levy? Page 9: “An officer may force an entry into any enclosure except the dwelling house of the judgment debtor in order to levy... on the debtor’s goods....” Page 8. “The sheriff’s duty is to execute the writ according to the plaintiff’s instructions. The writ is in the ‘exclusive control’ of the judgment creditor; the sheriff must follow the creditor’s reasonable instructions regarding the time and manner of making the levy....” Answer: Soft levy or this “execution” is garnishment.

21 Problem 29.1, page 492 Carol loans $1K secured. BCA gets $45K judgment lien Assume boat worth about $32K. What effect if Bob advances $31K? 1K

22 Problem 29.1, page 492 Carol loans $1K secured. BCA gets $45K judgment lien Assume boat worth about $32K. What effect if Bob advances $31K? 1K 45K

23 Problem 29.1, page 492 Carol loans $1K secured. BCA gets $45K judgment lien Boat is worth about $32K. 1K 45K 32K

24 Problem 29.1, page 492 Carol loans $1K secured. BCA gets $45K judgment lien Boat is worth about $32K. What result if Carol doesn’t advance? 1K 45K 32K

25 Problem 29.1, page 492 Carol loans $1K secured. BCA gets $45K judgment lien Boat is worth about $32K. What result if Carol doesn’t advance? BCA recovers $31K. 1K 45K 32K 1K 32K

26 Problem 29.1, page 492 Carol loans $1K secured. BCA gets $45K judgment lien Boat is worth about $32K. What result if Carol advances $31K? Will the new debt be secured? 1K 45K 32K

27 Problem 29.1, page 492 Carol loans $1K secured. BCA gets $45K judgment lien Boat is worth about $32K. What result if Carol advances $31K? Will the new debt be secured? Yes, if there is a security agreement. 1K 45K 32K §9-203(b). [A] security interest is enforceable... only if... (3)(A) the debtor has authenticated a security agreement...

28 Problem 29.1, page 492 Carol loans $1K secured. BCA gets $45K judgment lien Boat is worth about $32K. What result if Carol advances $31K? Will the new debt be secured? Yes, if there is a security agreement. What priority will it have? 1K 45K 32K

(a)(2). A security interest... is subordinate to... a person that becomes a lien creditor before the earlier of the time (A) the security interest... is perfected; or (B) one of the conditions in §9-203(b)(3) is met and a financing statement... is filed. Problem 29.1, page 492 Carol loans $1K secured. BCA gets $45K judgment lien Boat is worth about $32K. What result if Carol advances $31K? Will the new debt be secured? Yes, if there is a security agreement. What priority will it have? 1K 45K 32K

30 Problem 29.1, page K 45K Carol loans $1K secured. BCA gets $45K judgment lien Boat is worth about $32K. What result if Carol advances $31K? If Carol has a future advance clause, her advance has priority because made within 45 days.

31 Problem 29.1, page K 45K Carol loans $1K secured. BCA gets $45K judgment lien Boat is worth about $32K. What result if Carol advances $31K? If Carol has a future advance clause, her advance has priority because made within 45 days. What title passes at the sale?

32 32K Problem 29.1, page K Before After 32K 45K 32K Carol loans $1K secured. BCA gets $45K judgment lien Boat is worth about $32K. What result if Carol advances $31K? If Carol has a future advance clause, her advance has priority because made within 45 days. What title passes at the sale? Buyer takes subject to $32K.

33 32K Problem 29.1, page K Before After 32K 45K 32K Carol loans $1K secured. BCA gets $45K judgment lien Boat is worth about $32K. What result if Carol advances $31K? If Carol has a future advance clause, her advance has priority because made within 45 days. What title passes at the sale? Buyer takes subject to $32K. What can BCA expect from this sale?

34 32K Problem 29.1, page K Before After 32K 45K 32K Carol loans $1K secured. BCA gets $45K judgment lien Boat is worth about $32K. What result if Carol advances $31K? If Carol has a future advance clause, her advance has priority because made within 45 days. What title passes at the sale? Buyer takes subject to $32K. What can BCA expect from this sale? Nothing. Bob beat the execution!

35 32K Problem 29.1, page K Before After 32K 45K 32K Carol loans $1K secured. BCA gets $45K judgment lien Boat is worth about $32K. What result if Carol advances $31K? If Carol has a future advance clause, her advance has priority because made within 45 days. What title passes at the sale? Buyer takes subject to $32K. What can BCA expect from this sale? Nothing. Bob beat the execution! What’s the policy for allowing Carol to advance with knowledge of the lien?

36 32K Problem 29.1, page K Before After 32K 45K 32K Carol loans $1K secured. BCA gets $45K judgment lien Boat is worth about $32K. What result if Carol advances $31K? If Carol has a future advance clause, her advance has priority because made within 45 days. What title passes at the sale? Buyer takes subject to $32K. What can BCA expect from this sale? Nothing. Bob beat the execution! What’s the policy for allowing Carol to advance with knowledge of the lien? So secured beats tax lien

37 Problem 29.1, page U.S.C. §6323(d). Even though notice of a [tax] lien has been filed, such lien shall not be valid with respect to a security interest that came into existence after tax lien filing by reason of disbursements made before the 46 th day after the tax lien filing... SA Tax lien Secured Future advance 45 days Notice of tax lien

38 Problem 29.1, page U.S.C. §6323(d). Even though notice of a [tax] lien has been filed, such lien shall not be valid with respect to a security interest that came into existence after tax lien filing by reason of disbursements made before the 46 th day after the tax lien filing... but only if such security interest... is protected under local law against a judgment lien arising, as of the time of the tax lien filing, out of an unsecured obligation SA Tax lien Secured Future advance 45 days Notice of tax lien

39 Problem 29.1, page U.S.C. §6323(d). Even though notice of a [tax] lien has been filed, such lien shall not be valid with respect to a security interest that came into existence after tax lien filing by reason of disbursements made before the 46 th day after the tax lien filing... but only if such security interest... is protected under local law against a judgment lien arising, as of the time of the tax lien filing, out of an unsecured obligation Future advance beats the tax lien.... SA Tax lien Secured Future advance 45 days Notice of tax lien

40 Problem 29.1, page U.S.C. §6323(d). Even though notice of a [tax] lien has been filed, such lien shall not be valid with respect to a security interest that came into existence after tax lien filing by reason of disbursements made before the 46 th day after the tax lien filing... but only if such security interest... is protected under local law against a judgment lien arising, as of the time of the tax lien filing, out of an unsecured obligation Future advance beats the tax lien provided it would beat a judgment lien. SA Judgment Secured Future advance 45 days Levy

41 32K Problem 29.2, page 492 ? Before After 32K 45K ? We represent BCA. Sheriff’s sale is a few days from now. Deficiency may be collectible.

42 32K Problem 29.2, page 492 ? Before After 32K 45K ? We represent BCA. Sheriff’s sale is a few days from now. Deficiency may be collectible. If BCA doesn’t know the amount of Carol’s lien, what should BCA bid at the sale?

43 32K Problem 29.2, page 492 Before After 32K We represent BCA. Sheriff’s sale is a few days from now. Deficiency may be collectible. If BCA doesn’t know the amount of Carol’s lien, what should BCA bid at the sale? Impossible to calculate. 1K 45K 1K

44 32K Problem 29.2, page 492 ? Before After 32K 45K ? We represent BCA. Sheriff’s sale is a few days from now. Deficiency may be collectible. If BCA doesn’t know the amount of Carol’s lien, what should BCA bid at the sale? Impossible to calculate. How can we find out the amount of Carol’s lien?

45 32K Problem 29.2, page 492 ? Before After 32K 45K ? We represent BCA. Sheriff’s sale is a few days from now. Deficiency may be collectible. If BCA doesn’t know the amount of Carol’s lien, what should BCA bid at the sale? Impossible to calculate. How can we find out the amount of Carol’s lien? §9-210?

46 32K Problem 29.2, page 492 1K Before After 32K 45K ? We represent BCA. Sheriff’s sale is a few days from now. Deficiency may be collectible. If BCA doesn’t know the amount of Carol’s lien, what should BCA bid at the sale? Impossible to calculate. How can we find out the amount of Carol’s lien? §9-210? If we somehow found out it is $1K now, does that help?

47 32K Problem 29.2, page K Before After 32K 45K 32K We represent BCA. Sheriff’s sale is a few days from now. Deficiency may be collectible. If BCA doesn’t know the amount of Carol’s lien, what should BCA bid at the sale? Impossible to calculate. How can we find out the amount of Carol’s lien? §9-210? If we somehow found out it is $1K now, does that help? It could change before the sale!

48 32K Problem 29.2, page 492 ? Before After 32K 45K ? We represent BCA. Sheriff’s sale is a few days from now. Deficiency may be collectible. If BCA doesn’t know the amount of Carol’s lien, what should BCA bid at the sale? Impossible to calculate. How can we find out the amount of Carol’s lien? §9-210? If we somehow found out it is $1K now, does that help? It could change before the sale! What do we do?

49 32K Problem 29.2, page 492 ? Before After 32K 45K ? We represent BCA. Sheriff’s sale is a few days from now. Deficiency may be collectible. If BCA doesn’t know the amount of Carol’s lien, what should BCA bid at the sale? Impossible to calculate. How can we find out the amount of Carol’s lien? §9-210? If we somehow found out it is $1K now, does that help? It could change before the sale! What do we do? Scream for equity.

50 Problem 29.2, page 492 We represent BCA. Sheriff’s sale is a few days from now. Deficiency may be collectible. If BCA doesn’t know the amount of Carol’s lien, what should BCA bid at the sale? Impossible to calculate. How can we find out the amount of Carol’s lien? §9-210? If we somehow found out it is $1K now, does that help? It could change before the sale! What do we do? Scream for equity. But see §9-625(a)! §9-625(a). If it is established that a secured party is not proceeding in accordance with this article, a court may order or restrain... disposition of collateral on appropriate terms and conditions.

51 Problem 29.2, page 492 We represent BCA. Sheriff’s sale is a few days from now. Deficiency may be collectible. If BCA doesn’t know the amount of Carol’s lien, what should BCA bid at the sale? Impossible to calculate. How can we find out the amount of Carol’s lien? §9-210? If we somehow found out it is $1K now, does that help? It could change before the sale! What do we do? Scream for equity. But see §9-625(a)! §9-625(a). If it is established that a secured party is not proceeding in accordance with this article, a court may order or restrain... disposition of collateral on appropriate terms and conditions. Daniel’s solution: Delay the execution sale 45 days and then discover the balance owing.

52 Problem 29.2, page 492 Uni Imports, page 485 (indented text) quoting the Article 9 drafters (1972): It seems unfair to make it possible for a debtor and secured party with knowledge of the judgment lien to squeeze out a judgment creditor who has successfully levied on a valuable equity subject to a security interest

53 Problem 29.2, page 492 Uni Imports, page 485 (indented text) quoting the Article 9 drafters (1972): It seems unfair to make it possible for a debtor and secured party with knowledge of the judgment lien to squeeze out a judgment creditor who has successfully levied on a valuable equity subject to a security interest by permitting later enlargement of the security interest, by an additional advance....

54 Problem 29.2, page 492 Uni Imports, page 485 (indented text) quoting the Article 9 drafters (1972): It seems unfair to make it possible for a debtor and secured party with knowledge of the judgment lien to squeeze out a judgment creditor who has successfully levied on a valuable equity subject to a security interest by permitting later enlargement of the security interest, by an additional advance.

55 Home equity loans 60K 110K Home equity

56 Home equity loans General rule (Real Estate law): Future advances and non-advances have priority over intervening liens. 60K 110K Home equity

57 Home equity loans General rule (Real Estate law): Future advances and non-advances have priority over intervening liens. Home equity loan (blue) permits frequent advances and repayments 60K 30K 110K Home equity

58 Home equity loans General rule (Real Estate law): Future advances and non-advances have priority over intervening liens. Home equity loan (blue) permits frequent advances and repayments 60K 40K 110K

59 Home equity loans General rule (Real Estate law): Future advances and non-advances have priority over intervening liens. Home equity loan (blue) permits frequent advances and repayments 60K 10K 110K

60 Home equity loans General rule (Real Estate law): Future advances and non-advances have priority over intervening liens. Home equity loan (blue) permits frequent advances and repayments 60K 30K 110K

61 Home equity loans 60K 30K 110K 60K 15K 30K 110K General rule (Real Estate law): Future advances and non-advances have priority over intervening liens. Home equity loan (blue) permits frequent advances and repayments The rule ignores the effect on subsequent liens

62 Home equity loans 60K 15K 50K 110K General rule (Real Estate law): Future advances and non-advances have priority over intervening liens. Home equity loan (blue) permits frequent advances and repayments The rule ignores the effect on subsequent liens.

63 Home equity loans 60K 15K 50K 110K General rule (Real Estate law): Future advances and non-advances have priority over intervening liens. Home equity loan (blue) permits frequent advances and repayments The rule ignores the effect on subsequent liens. Because the priority is assured, the home equity lender doesn’t have to search before each advance.

64 Home equity loans 60K 15K 50K 110K General rule (Real Estate law): Future advances and non-advances have priority over intervening liens. Home equity loan (blue) permits frequent advances and repayments The rule ignores the effect on subsequent liens. Because the priority is assured, the home equity lender doesn’t have to search before each advance. General rule is great for home equity lenders.

65 Home equity loans Optional advance rule: If the future advance is “optional” and made with knowledge of the lien, the advance is subordinate. 60K 15K 30K 110K

66 Home equity loans Optional advance rule: If the future advance is “optional” and made with knowledge of the lien, the advance is subordinate. 60K 15K 30K 110K 20K

67 Home equity loans Optional advance rule: If the future advance is “optional” and made with knowledge of the lien, the advance is subordinate. Shutze: “Many Mississippians need to borrow substantial sums with which to educate their offspring.... They and their lenders need the security of the knowledge that their priority position will remain fixed to the date of the original deed of trust.... Any other view could imperil the student’s education...” 60K 15K 30K 110K 20K

68 Home equity loans Optional advance rule: If the future advance is “optional” and made with knowledge of the lien, the advance is subordinate. Shutze: “Many Mississippians need to borrow substantial sums with which to educate their offspring.... They and their lenders need the security of the knowledge that their priority position will remain fixed to the date of the original deed of trust.... Any other view could imperil the student’s education...” Can home equity lenders live with the optional advance rule? 60K 15K 30K 110K 20K

69 Home equity loans Optional advance rule: If the future advance is “optional” and made with knowledge of the lien, the advance is subordinate. Shutze: “Many Mississippians need to borrow substantial sums with which to educate their offspring.... They and their lenders need the security of the knowledge that their priority position will remain fixed to the date of the original deed of trust.... Any other view could imperil the student’s education...” Can home equity lenders live with the optional advance rule? 60K 15K 30K 110K 20K Don’t lend with knowledge of a lien?

70 Problem 29.3, page 492 Note, mortgage $50K advance Mortgagee

71 Problem 29.3, page 492 Records $100K Note, mortgage $50K advance Judgment Mortgagee

72 Problem 29.3, page 492 Records $100K Note, mortgage $50K advance Judgment Mortgagee $25K advance

73 Problem 29.3, page 492 Attorneys Fees $5K Records $100K Note, mortgage $50K advance Judgment Mortgagee $25K advance Interest $10K

74 Problem 29.3, page 492 Attorneys Fees $5K Records $100K Note, mortgage $50K advance Judgment Mortgagee $25K advance Now Interest $10K

75 Problem 29.3, page 492 Schutze rule applies. Attorneys Fees $5K Records $100K Note, mortgage $50K advance Judgment Mortgagee $25K advance Now Interest $10K

76 Problem 29.3, page 492 Schutze rule applies. Mortgagee has actual knowledge of the lien at time of future advance Attorneys Fees $5K Records $100K Note, mortgage $50K advance Judgment Mortgagee $25K advance Now Interest $10K

77 Problem 29.3, page 492 Schutze rule applies. Mortgagee has actual knowledge of the lien at time of future advance As between Mortgagee and J, who has priority? Attorneys Fees $5K Records $100K Note, mortgage $50K advance Judgment Mortgagee $25K advance Now Interest $10K

78 Problem 29.3, page 492 Schutze rule applies. Mortgagee has actual knowledge of the lien at time of future advance As between Mortgagee and J, who has priority? Mortgagee Attorneys Fees $5K Records $100K Note, mortgage $50K advance Judgment Mortgagee $25K advance Now Interest $10K 90K 100K Mortgagee for advances and non- advances Judgment

79 Problem 29.3, page 492 Optional advance rule applies. Attorneys Fees $5K Records $100K Note, mortgage $50K advance Judgment Mortgagee $25K advance Now Interest $10K

80 Problem 29.3, page 492 Optional advance rule applies. Mortgagee has actual knowledge of the lien at time of optional advance Attorneys Fees $5K Records $100K Note, mortgage $50K advance Judgment Mortgagee $25K advance Now Interest $10K

81 Problem 29.3, page 492 Optional advance rule applies. Mortgagee has actual knowledge of the lien at time of optional advance As between Mortgagee and J, who has priority? Attorneys Fees $5K Records $100K Note, mortgage $50K advance Judgment Mortgagee $25K advance Now Interest $10K

82 Problem 29.3, page 492 Optional advance rule applies. Mortgagee has actual knowledge of the lien at time of optional advance As between Mortgagee and J, who has priority? Attorneys Fees $5K Records $100K Note, mortgage $50K advance Judgment Mortgagee $25K advance Now Interest $10K 60K 100K Mortgagee for $50K and associated non- advances Judgment Mortgagee for $25K and associated non- advances 30K

83 45 days Problem 29.4, page 493 Attorneys Fees $5K Levy $100K SA, filing, $50K advance Judgment Secured $25K advance Now Interest $10K

84 45 days Problem 29.4, page 493 Attorneys Fees $5K Levy $100K SA, filing, $50K advance Judgment Secured $25K advance Now Interest $10K

85 Problem 29.4, page 493 §9-323(b) rule applies. Attorneys Fees $5K Levy $100K SA, filing, $50K advance Judgment Secured $25K advance Now Interest $10K 45 days

86 Problem 29.4, page 493 §9-323(b) rule applies. Secured has actual knowledge of the lien at time of optional advance Attorneys Fees $5K Levy $100K SA, filing, $50K advance Judgment Secured $25K advance Now Interest $10K 45 days

87 Problem 29.4, page 493 §9-323(b) rule applies. Secured has actual knowledge of the lien at time of optional advance As between Secured and J, who has priority? Attorneys Fees $5K Levy $100K SA, filing, $50K advance Judgment Secured $25K advance Now Interest $10K 45 days

88 Problem 29.4, page 493 §9-323(b) rule applies. Secured has actual knowledge of the lien at time of optional advance As between Secured and J, who has priority? Attorneys Fees $5K Levy $100K SA, filing, $50K advance Judgment Secured $25K advance Now Interest $10K 60K 100K Secured for $50K and associated non-advances Judgment Secured for $25K and associated non-advances 30K 45 days

89 Problem 29.5, page 493 Sheng Creditors Judgment entered Levy? FS 3 months Now

90 Problem 29.5, page 493 Sheng Creditors Judgment entered a. What is debtor, Conda Copper, doing? Levy? FS 3 months Now

91 Problem 29.5, page 493 Sheng Creditors Judgment entered a. What is debtor, Conda Copper, doing? 1. Borrowing secured? Levy? FS 3 months Now

92 Problem 29.5, page 493 Sheng Creditors Judgment entered a. What is debtor, Conda Copper, doing? 1. Borrowing secured? 2. Converting unsecured debt to secured? Levy? FS 3 months Now

93 Problem 29.5, page 493 Sheng Creditors Judgment entered a. What is debtor, Conda Copper, doing? 1. Borrowing secured? 2. Converting unsecured debt to secured? 3. Establishing priorities for future loans? Levy? FS 3 months Now

94 Problem 29.5, page 493 Sheng Creditors Judgment entered a. What is debtor, Conda Copper, doing? 1. Borrowing secured? 2. Converting unsecured debt to secured? 3. Establishing priorities for future loans? b. What should we do? Levy? FS 3 months Now

95 Problem 29.5, page 493 Sheng Creditors Judgment entered a. What is debtor, Conda Copper, doing? 1. Borrowing secured? 2. Converting unsecured debt to secured? 3. Establishing priorities for future loans? b. What should we do? Levy and then start discovery (or give up now). Levy? FS 3 months Now