O owns Blackacre, a lovely home in Phoenix, which is worth $100,000. Blackacre is mortgaged to M for $80,000. The mortgage provides that to secure the $80,000 debt, O mortgages "all the following described real estate (description omitted) including all
fixtures, improvement and appurtenances thereto, including those now existing or hereafter added to the property." The mortgage is duly recorded. Thereafter O purchases some lovely decorative mirror squares from Mike's Mirrors on credit ($800). O then hires Harry to attach the mirrors (with a rather strong glue) to the east wall of his living room. Harry charges O $150 for his labors. Mike properly filed a financing statement on the mirrors - before Harry began installation. Harry files a mechanic's lien for the labor he performed when he was finished. (Filed after Mike; Mike filed after M). O pays nothing to Mike and Harry. Mike wants his mirrors and Harry wants to be paid. M objects saying his mortgage is superior to their rights. What results?
Students should discuss terms such as PMSI, filing, after?acquired clause, etc. Mike has priority as PMSI, then M, then Harry. Mike can repossess so long as damage of removal is repaired.
You might also like to view...
The target population should be defined in terms of all of the following except ________
A) sampling units B) extent C) time D) size
The most accurate statement about the Robinson-Patman Act is A)It has rarely been enforced in recent years
B)The U.S. government has stepped up its enforcement during the last decade. C)It has been declared unconstitutional. D)It was repealed by Congress in 1998.
An easement protecting a view is an example of an air right
Indicate whether the statement is true or false
Police power is: A) the states' authority to bypass the Fifth Amendment
B) the states' authority to conduct searches under the Fourth Amendment. C) government agencies' authority to conduct a search of private property at any time. D) the states' power to pass laws to promote public welfare and health and safety.