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Question
PalmTree Agro Corp. (debtor) obtains a secured loan from Valor Equity Bank. The Security Agreement covers “all present and future personal property” of PalmTree Agro Corp., explicitly listing coffee bean inventory, the roaster equipment, accounts receivable, and a license to use an agritech platform as collateral. Valor Equity Bank files a financing statement. PalmTree later sells roasted coffee beans to BlueMountain Markets, a buyer who has no knowledge of the security interest. PalmTree also enters into a factoring arrangement with FlowCredit LLC to sell post-sale receivables arising from the BlueMountain sale. In light of Secs. 3 and 4 of RA 11057, discuss (i) which asset categories fall within the Act’s definitional and scope; and (ii) whether the security interest extends to (A) the sold beans, (B) the cash proceeds from the sale, and (C) the post-sale receivables arising from the factoring arrangement.