Biology Forums - Study Force

In Fordyce Bank and Trust v. Bean Timberland, the bank lent Bean money to buy timber from landowners. Bean gave the bank security interests in the timber, which he sold to lumber companies that milled the logs into lumber. When Bean defaulted on the loan, the bank tried to collect from the lumber companies because it had a secured interest in the timber. The courts held that the bank:
 a. gets nothing from the timber companies, they were not responsible for the security interests and breached no duty to the bank
  b. collect the unpaid balance of the loan from the timber companies, depending on how much secured timber they bought from Bean
  c. collect the unpaid balance of the loan from the timber companies, which are each jointly and severally responsible under UCC 4-320, which sets strict standards for security interests
  d. collect the unpaid balance of the loan from the timber companies only if it can show that the companies had been notified by the bank each time they accepted timber from Bean
  e. none of the other choices

a

So smart