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Security Interest Case

Computatrix, a computer retailer, sells a new computer to Davina on credit. Davina buys the computer for her personal, home use. Computatrix attaches a security interest on the computer but does not file. Shortly thereafter, Davina sells the computer to Boulder for $2,000. Boulder buys the computer for his own personal, household use and also buys without knowledge of Computatrix's interest. After Davina defaults on her debt, Computatrix tries to reclaim the computer from Boulder. Will it succeed? Why or why not?

(Answer provided in approximately 100 words.)

Solution Preview

In order for the security interest to be valid, the company must file a financing statement within twenty days from the day that the borrower takes physical possession ...

Solution Summary

This solution explains if Computatrix has a right to reclaim their computer from Boulder. I thoroughly explain if they will succeed.