Reference no: EM131293247

A-Plus Auto Works sells and repairs used cars. As a benefit to its mechanics, A-Plus keeps a washer and dryer on hand to wash uniforms at the end of each shift. A-Plus must replace these units frequently given the high usage and soil level of mechanic uniforms. On Oct. 1, A-Plus bought a new industrial-grade replacement washer and dryer from Jack's Pro Appliances for $5000. A-Plus could not pay the entire amount in cash, so it signed a purchase agreement to pay $750 down and $250 per month, until the balance, plus interest is paid in full. Jack's Pro Appliances retains a security interest in the washer and dryer until full payment is made. On Oct. 2, A-Plus obtained a $250,000 loan from One Bank to renovate its building and garage. One Bank obtained a security interest in substantially all of A-Plus Auto's assets, including equipment and proceeds. On Oct. 30, One Bank filed a financing statement to perfect its interest. A-Plus filed bankruptcy on Nov. 30. Assume that all of the assets, including the washer and dryer, were liquidated. Whose security interest takes priority in the proceeds of the assets, including the washer and dryer? Discuss your reasoning.