Bill Owns a Small Factory Which Manufactures Seatbelt Parts for the Automobile

Essay

Bill owns a small factory which manufactures seatbelt parts for the automobile industry.Although business has steadily increased for the last two years,the company still owes the bank a significant amount of money.In fact,to secure start up monies,the company was required to provide a chattel mortgage to the bank including an after acquired property clause.Bill becomes aware that a machine used to manufacture seatbelt parts has become available from a local businesswoman.However,Bill's company cannot pay cash for the machine and cannot provide the businesswoman with any security in relation to its existing assets.A special priority can in fact arise if the businesswoman reserves a security interest in the seatbelt making machine itself.This interest is known as
a)a perfected security interest.
b)a purchase-money security interest (PMSI).
c)an attachment or performance of agreement.
d)an unperfected security interest.
e)a trust deed.