Regulation Question – Priority of Secured Transactions

  • Creator
    Topic
  • October 7, 2012 at 1:52 pm #174243
    Anonymous
    Inactive

    Hi,

    I need some clarification on priority ranking of a secured transactions.

    For example:

    Assume Knox’s is an electronic store:

    And these are the expenses:

    1.Claims by Dart corp. (one of knox’s suppliers) for computers ordered on April 6, 2008, and delivered on credit to Knox on April 10, 2008. $20,000

    3.Claim by Boyd for a deposit given to Knox on April 1, 2008 for a computer Boyd purchase for personal use but that had not yet been received by Boyd. $1,500

    When it’s time to pay back these creditors which one has a higher ranking priority? 1 or 3?

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