Exam 27: Secured Transactions

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

Perfection by investment of collateral is one of the methods of perfecting a security interest under the UCC.

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

Perfection ________ is a situation where the creditor does not have to file a financing statement or take possession of the goods to perfect a security interest.

The inability of a debtor to pay a debt because of bankruptcy does not constitute default.

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

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

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 after signing the security agreement.

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.Who is the debtor in this case?

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

Which of the following is true of perfection by possession of collateral?

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

A ________ has an ownership or other interest in the collateral and owes payment of a secured obligation.

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

To be valid,a security agreement must set forth the creditor's rights on the debtor's default.

Kelly borrows $12,000 from Terry Oswald to pay for her mother's surgery.The debt-repayment period is 15 months,but Kelly manages to repay it in 11 months.Which of the following must be filed by Oswald after receiving the final installment of his money?

Which of the following is considered tangible personal property?

________ is a process that establishes the right of a secured creditor against other creditors who claim an interest in the collateral.

Which permits a secured lender to recover other property or income from a defaulting debtor if the collateral is insufficient to repay the unpaid loan?

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