Exam 23: Credit and Secured Transactions

A security interest may not be given in accounts receivable.

Which of the following is/are a prejudgment collection remedy?

An improperly recorded document is not effective against either subsequent purchasers of the real property,or other mortgagees or lienholders who have no notice of the prior mortgages.

Revised Article 9 (Secured Transactions)of the Uniform Commercial Code (UCC)governs secured transactions in personal property.

Which of the following is/are a post-judgment collection remedy?

Who is the mortgagor in mortgage transaction?

The automatic perfection rule applies to a purchase money security interest in consumer goods.

Guarantors:

A television purchased for your home and a television purchased for your business would both be considered "goods."

What is a guaranty arrangement?

Which security interests are perfected at the moment of attachment?

Most states permit foreclosure by ________,although this instrument must be ________ conferred in the mortgage or deed of trust.

In order to perfect a security interest by filing,which is true about what must be filed?

Betty owns a home electronics store.Betty borrowed $100,000 a couple of years ago from Thirdbank,and Betty granted a security interest to Thirdbank on "present and after-acquired inventory." Betty is a generous store owner.Employees are able to select electronics and place them in their offices and homes.The understanding was that these systems would be sold as demonstrator units after a few months,but that has happened only once.Most of these systems have been in employee offices or homes since shortly after the store opened two years ago.Betty defaults on the debt to Thirdbank.Will Thirdbank be able to recover the electronic components located in employee offices and homes?

If a debtor has a defense to the payment of a debt,can a surety or guarantor avoid paying the debt on the basis of the debtor's defense?

Steve is known for buying everything on credit.He typically has a dozen regular monthly payments on installment debt.He might have couch payments,mattress payments,stereo payments,and coffeemaker payments all at the same time.He sells his dining room table and chairs to Bob,his friend.A couple of months later,the furniture company that sold the table to Steve shows up at Bob's house to repossess the table,because Steve has stopped making payments on the debt he incurred in purchasing the table.The furniture store claims it is entitled to the table,because it has a purchase money security interest in the table which automatically perfected when Steve purchased it.How would this case turn out?

Common garnishees include employers who possess wages due a debtor.

State law limitations on garnishment control are often less stringent than federal law.

Most states permit foreclosure by power of sale,and this right is implicitly conferred in the mortgage or deed of trust.

Because lenders are sometimes reluctant to lend large sums of money simply on the borrower's promise to repay,many of them take a security interest in the property purchased or some other property of the debtor.