On May 2, 1990 SAFE BANK discussed the possibility of loaning Tyler Corp. $500,000. Tyler signed a security agreement and UCC-1 Financing Statement covering its existing equipment. On May 4th, SAFE BANK properly filed the UCC-1 Financing Statement. On May 7, Tyler approached ONE TIME CREDIT about borrowing $600,000 secured by the same equipment. On that same day, ONE TIME CREDIT obtained a signed security agreement, promissory note, and UCC-1 Financing Statement from Tyler Corp, gave Tyler the money and properly filed the UCC-1 Financing Statement. On May 10, Tyler signed a promissory note and received the $500,000 from SAFE BANK.
A) If Tyler defaults on both loans, who has a superior interest in the equipment?
B) Would your answer change if ONE TIME CREDIT took possession of the collateral instead of filing a UCC-1 Financing Statement?
