solution

Iris is a loans officer at Humungous Bank (HB). Archie runs a retail shoe business, and is one of HB’s clients. HB gave Archie a business loan, which is secured by a general security agreement and HB taking a security interest in “all present and after-acquired property” of Archie’s. This security interest was properly registered by HB under the BC Personal Property Registry.

Later, Archie really needs to purchase some new computer equipment to better track his shoe store’s inventory. He asks HB for additional loan money, but Iris refuses to lend any more on behalf of the HB. Archie tries to find another lender to borrow money from so he can buy the computer equipment.

His friend, Lola, is willing to lend the money, but she will only lend it if she can have a security interest in Archie’s computer equipment that is in first priority. Lola is worried that Archie will not be able to pay back the loan, so she wants to be able to seize the computer equipment and sell it of necessary. Lola notices that HB already has a security interest in all property belonging to Archie, and this would include his new computer equipment.

Is there any way that Lola can be the secured creditor with first priority to Archie’s computer equipment if she lends Archie the money to but it?

Please answer it in IRAC format