Exam 27: Secured Transactions and E-Filing

A floating lien is a security interest in property that was not in the possession of the debtor when the security agreement was executed.

An artisan's lien is a statutory lien given to workers on personal property to which they furnish services or materials in the ordinary course of business.

When a creditor extends credit to a debtor and takes a security interest in some personal property of the debtor, it is called a ________.

The extension of credit in a secured credit requires the purchaser's pledge to some personal property as collateral for the loan.

What of the following is true of the rule of perfection by possession of collateral?

In a secured transaction, the debtor is the secured party.

A(n)________ refers to a security interest in property that was not in the possession of the debtor when the security agreement was executed.

A business purchases an airplane from an airplane manufacturer.The business obtains a loan to purchase the airplane from a bank, which obtains a security interest in the airplane.The airplane manufacturer is paid for the airplane from of the proceeds of the loan.This is a ________ transaction.

Gregory borrows $200, 000 from Mountain Bank to purchase a plot of land, and Mountain Bank perfects its security interest in the house for this amount.Gregory defaults on the loan when he owes $80, 000 to the bank.His house has gone down in value to $160, 000 at the time of default, but he has other personal assets to satisfy the debt.Which of the following is a course of action for Mountain Bank to recover the debt?

What is a financing statement? What is its significance in perfecting a security interest?

Which of the following is true of financing statements?

Inability of a debtor to pay a debt owing to bankruptcy does not constitute default.

A financing statement refers to a document filed by a secured creditor with the appropriate government office that constructively notifies the world of his or her security interest in personal property.

In a secured credit, the creditor cannot recover the collateral despite the debtor's defaults on the loan.

A property in which a security interest is taken is called ________.

Which article of the Uniform Commercial Code governs secured transactions in personal property?

Attachment is a situation in which the value of the creditor's collateral is insufficient to satisfy the debt it is collated for.

In a three-party secured transaction, the party that purchases the good or service is known as the buyer-secured creditor.

Distinguish between two-party and three-party secured transactions with examples.

A termination statement is filed when the secured party wishes to claim the collateral because the debt has not been paid.