Exam 33: Secured Transactions in Personal Property

Creditors cannot legally request collateral on a previously unsecured loan.

All of the following are elements of a security agreement except: ______.

All of the following are elements of attachment except: ______.

Suppose Harvey is a secured creditor and Joe is the debtor.If Harvey sells the collateral because Joe defaulted,Joe is not liable for any deficiency.

A purchase money security interest in consumer goods is automatically perfected without a creditor's filing or possession of the collateral.

Attachment provides creditors with rights against debtors.

Grund,a professional night club musician,financed the purchase of a drum set to be used in his night club act.Under Article 9,the drum set will be classified as a consumer good.

A security interest is like a lien on personal property that allows the creditor to take possession of the property if the debtor defaults.

Because the financing statement is intended as notice to third parties,it must be filed in a public place.

If two creditors have a security interest in the same collateral,their priority is determined according to the "last in-first out" provision.

Property that is subject to a security interest is called collateral.

Collateral may change its form and character during the course of a security agreement.

A security interest needs to be perfected,regardless of whether there are competing claims for the collateral.

Under Revised UCC Article 9,a debtor may authorize a financing statement by acquiring the collateral that is subject to the security agreement.

Javier buys a 3D TV and a DVR from West Coast Sales.West Coast agrees to lend him 90 percent of the purchase price.Their agreement is known as a(n): ______.

Upon a default by a buyer,the secured seller may resell the collateral:

Claim in a changing or shifting stock of the buyer's goods is known as after-acquired goods.

A creditor must file a financing statement for a security interest to attach.

_______,a form of possession under Article 9,occurs when a bank is able to require the debtor account holder to clear all transactions in that account.

Secured transactions are governed by Article 2 of the Uniform Commercial Code.