Which will suffice to perfect that interest

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Reference no: EM133901614

Problem

To secure a $50,000 loan, First Bank has a security interest in a $250,000 negotiable promissory note owned by and payable to Deserving Enterprises, Inc. First Bank has possession of the note. Deserving wants to borrow an additional $100,000 to be secured by the note. First Bank is willing to advance that additional amount, but Second Bank is willing to do so at a much lower interest rate. If Second Bank makes the loan and gets a security interest in the note, which will suffice to perfect that interest?

I. First Bank agrees to hold the note for itself and Second Bank. Is First Bank likely to do this? If not, what alternative ways to perfect do you recommend? Get the instant assignment help.

II. The majority shareholder of Deserving Enterprises, who is not an employee of the company, agrees to hold the note for both First Bank and Second Bank.

Reference no: EM133901614

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