A homeowner owned a parcel of land on which she built a sing…
A homeowner owned a parcel of land on which she built a single-family residence. To pay for the construction, she obtained financing from a bank in exchange for a mortgage on the land. The bank promptly and properly recorded its mortgage. When the house was completed, except for the absence of an oven in the kitchen, the homeowner leased the house to a tenant for a three-year term. There was no provision in the lease agreement regarding kitchen appliances. The homeowner bought an oven from an appliance company and had it installed in the space provided around the built-in cabinets in the kitchen. To make the purchase, the homeowner signed a security agreement with the appliance company granting it a security interest in the oven in exchange for financing. The appliance company did not file or record its security interest in the oven. By the end of the lease term, the homeowner was in serious default on her mortgage payments to the bank and to the appliance company. In preparing foreclosure proceedings against the homeowner, the bank learned that the tenant was planning to remove the oven and take it with him when he moved out within the next few weeks. The bank filed an action against the tenant claiming ownership of the oven, and joined the homeowner and the appliance company as parties. Which party has a superior claim to the oven?