Exam 25: Security Interests and Creditors Rights

A floating lien is a security interest retained in collateral even when the collateral changes in character, classification, or location.

A party who owes payment or performance of a secured obligation is a secured party.

A security agreement must describe the collateral because no security interest can exist unless the parties agree on the property subject to it.

Mobile Talk LLC sells phones. The phones are the collateral for a loan from Noble Bank to the seller. The parties agree to extend the UCC's automatic-perfection period for proceeds. In regard to the bank's interest in the proceeds, this agreement

Maritime Bank holds a security interest in Ned's fishing trawler. Ned defaults on the debt. Maritime takes possession of the boat and notifies Ned that it will be sold to recover some of the unpaid debt. Before the sale, Ned can regain possession by

Because a writ of attachment is a prejudgment remedy, a debtor does not need to be given notice and an opportunity to be heard before the property is seized.

Owen is given value by Payday Sales Company in the form of a commitment to sell goods on credit. In terms of creating an enforceable security interest, this is

The payment of Cathy's debt to Debt Collector LLC is guaranteed by Cathy's personal property. Debt Collector is most likely to perfect its interest by

Several documents may be considered together to comprise a security agreement.

Bayside Marina borrows funds from Credit Union secured by Bayside's interest in the marina. If Credit Union fails to perfect its claim to the collateral, the claim will be reduced to that of

A security interest can cover only property in which the debtor has present rights.

The UCC does not define the term default. This encourages the parties to a secured transaction to