Jones has installed solar water heater panels on the roof of his ...

[lunatika]

Jones has installed solar water heater panels on the roof of his home. The panels are connected by pipes to the water heater (located in the house). Jones' neighbor, Smith, has added a second story and a balcony to his (Smith's) home. The new addition prevents the sun from hitting Jones' panels and Jones has not had a warm shower for a month. a. Does Jones have any rights against Smith for the prevention of the obstruction? b. Are the solar panels fixtures or personal property? Are any facts missing that are necessary for this determination? c. Suppose Jones' home is subject to a mortgage. The mortgage agreement has a clause covering all additions to the property. The mortgage was recorded on April 2, 2007. Jones had purchased the equipment for the solar panels on credit from Solar Water, Inc on November 19, 2009. What steps should Solar Water, Inc take to assure its interest in the panels? d. Is there any way Solar Water can enjoy priority over the bank's mortgage?

Question 2

Under Revised UCC Article 9, a debtor may authorize a financing statement by acquiring the collateral that is subject to the security agreement.
  Indicate whether the statement is true or false

[snackralk]

Answer to Question 1

a. No, not unless an easement has been or is obtained
b. Annexation - part of water system; now an integral part of the home; probably a fixture

c. Should execute security agreement and financing statement and file.

d. Since it is a PMSI, should file locally to perfect and take priority over mortgagee.

Answer to Question 2

TRUE