BUSINESS LAW: You are continuing in your capacity as intern for Lambert, Bendini
ID: 1138427 • Letter: B
Question
BUSINESS LAW: You are continuing in your capacity as intern for Lambert, Bendini & Bocke. Your supervising partner (Mitch Grisham) is unfortunately still suffering from the ill effects of last week's food poisoning, and is working from home again today. He has asked you to see some of his clients, and to report back to him with your recommendations. Earlier today you met with Mr. Wayne Tarrance, a consumer loan specialist employed by Anderson Bank. Lambert, Bendini & Bocke represent the bank. Mr. Tarrance wanted legal advice about a problem with one of the bank's customers. It seems Mr. Tarrance recently completed a loan to a gentleman called Eddie Lomax, so that he could buy a new $60,000 Tesla. Mr. Tarrance informed you that he completed all of the required paperwork at the time of the loan, including a written financing statement giving the bank a security interest in the new vehicle. After several months of Mr. Lomax not making payments on the car, the bank decided to repossess the vehicle and sell it to repay the defaulting loan. Although the financing statement between Mr. Lomax (debtor) and Anderson Bank (creditor) was correctly perfected at the time it was completed, Mr. Tarrance has just discovered that the customer’s full name is actually Edward Lommax. He wants to know if the security under the agreement still enforceable.
Explanation / Answer
Ans. Yes, the security under the agreement would still be enforceable if the documents submitted by him during taking loan with valid photograph on loan documents as well as the same photograph such that Anderson bank could establish that Edward is the same person as Edward Lommax. In such circumstances the bank could get its security back by legally enforcing the security agreement between the bank and the Edward.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.