Exam 23: Secured Transactions

Ronald Finance was a secured lender to Shirley who used her car as a collateral. Shirley defaulted on her loan and an employee of Ronald Finance sneaked over to Shirley's house at night and removed her car. Which statement below is correct?

Roberto Financing is incorporated in Delaware and does business throughout all 50 states in the United States and in China and India. If it wants to file a UCC-1 financing statement to perfect a security interest on collateral, where would be allowable according to the law?

All of the following may be used as collateral for a secured transaction except

Wyatt wishes to buy a new combine for his farm to harvest the wheat. The cost of the new combine is about $500,000.00 for which he must secure a loan to purchase. The bank that is willing to loan him the amount requires Wyatt to put up collateral to ensure that if he is unable to repay that loan that the bank will be able to seize the asset to repay the loan. This situation is called

Perfecting a security interest is the process by which a secured lender can protect its security interest from other creditors who might assert claims against the same collateral.

Pfeffy Industries borrows money from the Bank of Chicago for an expansion but does not offer any collateral to secure the loan. If Pfeffy Industries goes bankrupt, the Bank of Chicago will be the first in line to be repaid for any debt in a bankruptcy proceeding.

Noah secures a loan with the following "all furniture currently owned and hereafter acquired." This is an example of a floating lien.

Which of the following statements below is correct about a pawnbroker?