Assignment task:
On June 1, D, a construction company, obtained a $100,000 loan from SP-1, and executed in favor of SP-1 a security agreement covering "all construction equipment now owned or hereafter acquired" by D. D owned construction equipment such as bulldozers, cranes and trucks. SP-1 immediately filed a financing statement covering "construction equipment."
What policy considerations underlie the legal rules that decide parts (a) and (b)? See UCC 9-324, Comment 4; Note (2) on Purchase-Money Priority and the Definition of "Purchase-Money Security Interest," infra.
Would the results in parts (a) and (b) change if the security agreement in favor of SP-1 contained the following provision? - Debtor shall not create or suffer to exist any security interest (including any purchase-money security interest) in any collateral that is, at any time, covered by this agreement, and any such prohibited security interest that Debtor may attempt to create shall be null and void. See UCC 9-401.