Problem.SP vs. SP.2

     In January, Bank of Bambino entered into a security agreement with the Cooperstown Bat Corporation, taking a security interest in all of Cooperstown’s inventory, accounts receivable, and equipment, then existing and thereafter acquired. The bank filed a sufficient financing statement in the correct location.

     A year later, RuthWorks, manufacturer of bat making equipment, sold Cooperstown a new bat maker (the RW-600) on credit, retaining a security interest in the equipment.  RuthWorks delivered the equipment to the debtor in stages and assembled the equipment at Cooperstown's manufacturing site.  RuthWorks filed a sufficient financing statement in the correct location a week after completing assembly of the quipment.   

     A fire destroyed the RW-600 a few days after its delivery to Cooperstown.  Fortunately, it was insured.  To whom should Cooperstown indorse the insurance check?  U.C.C. 9-324(a), Official Comment 3 to U.C.C. 9-324, 9-315, 9-102(a)(64), 9-102(a)(9).  

     You will find analagous issues in the context of inventory and accounts financing.  Will a purchase-money inventory financier take priority over an earlier inventory financier with an after-acquired property clause?  Will the security interest of a purchase-money financier in the proceeds of the sale of inventory take priority over an earlier accounts or inventory financier with an after-acquired property clause?  See U.C.C. 9-324(c), (d), Official Comments 4, 5 and 8 to U.C.C. 9-324, and the examples in Official Comment 9 to U.C.C. 9-324.