Exam 27: Secured Transactions

A two-party secured transaction occurs when a seller sells goods to a buyer on credit and retains a security interest in the goods.

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

John buys a new car with the help of a loan.He permits the creditor to take possession of the car if he cannot repay the loan in time.Here,the car is the ________.

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

After-acquired property is property obtained by the creditor after a security agreement has been executed.

Which of the following refers to the assets resulting from the exchange or disposal of collateral subject to a security agreement?

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

Which of the following is true of financing statements?

Which of the following transactions occurs when a seller sells goods to a buyer on credit and retains a security interest in the goods?

Chattel paper is considered tangible personal property.

Which of the following is true of disposition of collateral?

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

Distinguish between two-party and three-party secured transactions,and provide some examples.

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.

What is a secured transaction?

A creditor who has the only secured interest in the debtor's collateral has priority over unsecured interests.

Attachments are funds advanced to a debtor from a line of credit secured by collateral.

________ is a situation in which a creditor agrees to extend credit only if the purchaser pledges some personal property as collateral for the loan.

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 creditor must ________ the collateral if he or she receives a written objection to the proposal from a person entitled to receive notice within 20 days after the notice was sent.