Exam 37: Secured Transactions and Suretyship

UCC Article 9 applies to secured transactions in which the debtor provides a security interest to secure payment of a debt,such as pledging warehoused goods to a creditor.

A bond which guarantees the performance of the terms of a contract is a(n)____ bond.

If a principal debtor defaults on a loan,an absolute surety will have to pay upon demand of the creditor.

Rodrigo lends money to Isaac on Linda's promise to act as a surety.Rodrigo's extension of credit is the consideration to support Isaac's promise to repay the loan and Linda's suretyship undertaking.

Dr.Wells purchased a refrigerator to use for storing medications at his office.The refrigerator will be classified as:

Shyann signs a suretyship agreement that contains both her name and that of her friend Rachele as intended cosureties.Rachele did not sign the agreement.Shyann is liable since she signed the agreement.

The purpose of bail bond in a criminal proceeding is to assure the appearance of the defendant in court.

Authentication of a security agreement may occur by the debtor's encrypting a record in part,with the present intent of the authenticating party's accepting the record.

Fred agreed to loan George $10,000 for his retail store for which George signed a promissory note.Two months later,Fred heard that George's business was in trouble and that he might not be able to repay the loan.As a result of hearing this information,Fred asked Herman to guarantee the loan.Herman gave a glowing oral endorsement of George and of George's business and then orally promised to pay the $10,000 if George did not.Herman has done business with George for 10 years and George buys his entire inventory from Herman's wholesale outlet.Herman adds that George is his major customer.Is Herman's agreement to pay the $10,000 if George does not pay it enforceable?

If a minor principal disaffirms a contract and returns the consideration,the surety is discharged.

In a suretyship,the creditor's rights against the principal debtor are determined primarily by the contract between them.

If a security interest has attached,it is enforceable against the debtor.

Which of the following is NOT included in the rules of priority established by Article 9?

Which of the following contractual defenses are not available to those parties involved in surety relationships?

Sureties have a right of exoneration against their cosureties.

Dale defaults on a car loan secured by his car and guaranteed by both Selena and Tobey.Subrogation would allow Selena,who paid Dale's full obligation,to:

If two parties have unperfected security interests in the same collateral,the first to attach has priority.

An automobile buyer in the ordinary course of business will take free and clear of a security interest created by the buyer's seller.

The surety,as defense to payment,may assert a principal debtor's defense of minority.

Specialized suretyships would include: