Exam 27: Secured Transactions

A ________ is an interest a creditor automatically obtains when he or she extends credit to a consumer to purchase consumer goods.

A financing statement covering fixtures is called a continuation statement.

If a lender extends unsecured credit to a debtor,the creditor takes no interest in any collateral to secure the loan.

Only one continuation statement can be filed for a financing statement.

The extension of secured credit requires a debtor's pledge of some personal property as collateral for a loan.

Which of the following is true of the priority of claims?

Intangible personal property cannot be used as collateral for a security agreement.

The term ________ refers to a secured creditor's possession of collateral on a debtor's default and proposal to retain the collateral in satisfaction of the debtor's obligation.

Darrel,Smith,Keith,and Aaron are claimants to a collateral interest.Smith and Darrel secure their interests.Aaron takes physical possession of the collateral.Keith files a financing statement some time later.Who among the four will have highest priority of claim to the collateral?

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

Tangible personal property includes securities,patents,trademarks,and copyrights.

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

The term ________ refers to a secured creditor's repossession of collateral on a debtor's default and selling,leasing,or otherwise disposing of it in a commercially reasonable manner.

A three-party secured transaction occurs when a seller sells goods to a buyer who has obtained financing from a third-party lender who takes a security interest in the goods sold.

A ________ is a written document signed by a debtor that creates a security interest in personal property.

Accessions are pieces of individual property or goods that are not united with any other property.

When a creditor extends credit to a debtor and takes a security interest in some personal property of the debtor,it is called a ________.

A(n)________ refers to a security interest in property that was not in the possession of the debtor when the security agreement was executed.

Repossession refers to a right granted to a secured creditor to take possession of collateral in the event of a default by the debtor.

Gregory borrows $200,000 from Mountain Bank to purchase a plot of land,and Mountain Bank perfects its security interest.Gregory defaults on the loan,and owes an outstanding balance of $80,000.His house has gone down in value to $160,000 at the time of default,but he has other personal assets to satisfy the debt.Which of the following is a course of action for Mountain Bank to recover the debt after foreclosing on the loan?