(Ford), whereby Ford extended a continuing line of credit to Heritage
to purchase vehicles. Heritage granted Ford a purchase money
security interest in all motor vehicles it owned and thereafter acquired
and in all proceeds from the sale of such motor vehicles. Ford
immediately filed its financing statement with the secretary of state.
When the dealership experienced financial trouble, two Heritage
officers decided to double finance certain new cars by issuing dealer
papers to themselves and obtaining financing for two new cars from
First National Bank & Trust Company of El Dorado (Bank). The loan
proceeds were deposited in the dealership’s account to help with its
financial difficulties. The cars were available for sale. When the
dealership closed its doors and turned over the car inventory to Ford,
Bank alleged that it had priority over Ford because the Heritage
officers were buyers in the ordinary course of business. Who wins?
First National Bank and Trust Company of El Dorado v. Ford Motor
Credit Company, 231 Kan. 431, 646 P.2d 1057, Web 1982 Kan. Lexis
280 (Supreme Court of Kansas)
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ACC 543 Week 5 Individual Textbook Exercise (47.2, 47.3,
47.6, 50.1, 50.6, 50.7, 45.2, 45.5, 45.6, 45.7)
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47.2 Mislaid
47.3 Bailment
47.6 Abandoned Property
50.1 Exclusion from Insurance
50.6 Malpractice Insurance
50.7 Duty to Defend