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Harco is a retailer of appliances. Harco buys its inventory from RST. Inc., the manufacturer. To finance its inventory, Harco buys appliances from RST on credit, signing a promissory note and giving RST a security interest in the inventory. RST perfects this security interest. Harco also needed cash for working capital, so Harco borrowed money from First Bank, giving First Bank a security interest in Harco inventory. First Bank perfected this security interest before RST perfected its security interest. Harco cannot pay its debts, so both RST and First Bank attempt to foreclose on this inventory. Discuss who has priority and why
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