Disposition of collateral. PRA Aviation, LLC, borrowed $3 million from Center Capital Corp. to buy a Gates Learjet 55B. Center perfected a security interest in the plane. Later, PRA defaulted on the loan, and Center obtained possession of the jet. The jet’s value was estimated at $1.4 million based on the market, design, and mechanical condition of similar aircraft. The jet was marketed in trade publications, on the Internet, and by direct advertising to select customers for 1.6 million. There were three offers. Center sold the jet to the highest bidder for $1.3 million.
Was the sale commercially responsible? Please explaing in one to two paragraphs.
Perfecting a Security interest. Thomas Tille owned M.A.T.T. Equipment Co. To operate the business, Tille borrowed funds from Union Bank. For each loan, Union filed a financing statement that included Tille’s signature and address, the bank’s address and the description of the collateral. The first loan covered all of Tille’s equipment, including “any-acquired property.” The second loan covered a truck crane “whether owned or acquired later.” The third loan covered a “bobcat mini-excavator.”
Did these financing statements perfect union’s security interests? Please explain in one to two paragraphs.