Exam 27: Secured Transactions and E-Filing

William buys a $500, 000 house from Keith Geller through a realtor.He makes a down payment of $200, 000.He borrows the rest from Smith and Sons, a lending firm, and places his new house as collateral for the loan.Which of the following is the debtor in this case?

A chattel paper is a record that evidences both a monetary obligation and a security interest in specific goods and software used in the goods.

A secured transaction is one in which the creditor and debtor carry out financial transaction in a secure medium, such as a private communication channel.

Marcia buys a $3, 000 high-definition plasma television for her home on credit extended by the seller, Circuit City.Circuit City requires Marcia to sign a security agreement.Circuit City has a ________ interest in the television that is automatically perfected at the time of the credit sale.

A(n)________ is a statutory lien given to workers on personal property to which they furnish services or materials in the ordinary course of business.

For an artisan's lien to be effective, the artisan must be in possession of the property.

The property in which a security interest is taken is called collateral.

Which of the following constitutes default?

Explain in brief the concept of deficiency judgment with an example.

A financing statement covering fixtures is called a continuation statement.

Retention of collateral refers to a debtor's repossession of the collateral after paying the debt.

Kimberly borrows $50, 000 from a bank.She gives the bank a security interest in her ________ inventory.This implies that if Kimberly does not repay the loan in the stipulated period, the bank can claim any assets she purchased post the draft of the security agreement.

Financing statements are effective for five years from the date of filing.

The term sales proceeds refers to the resulting assets from the sale, exchange, or disposal of collateral subject to a security agreement.

Article 9 of the Uniform Commercial Code governs secured transactions in personal property.

A(n)________ is property that a debtor acquires post the execution of a security agreement.

Which of the following is considered tangible personal property?

Security interest is the rate of interest per annum which is entitled to the party that secures payment or performance of an obligation

A(n)________ is a record that evidences both a monetary obligation and a security interest in specific goods and software used in the goods.

________ is a situation in which the creditor does not have to file a financing statement or take possession of the goods to perfect his or her security interest.