Exam 32: Secured Transactions

Everyday Loans,Inc.,issues a line of credit in Glade Electronics Corporation under a security agreement.Later,Glade buys new HD-TVs to add to its inventory.Everyday has a security interest in the new inventory 

Attachment gives the creditor an enforceable security interest in the collateral.

A financing statement is effective for five years from the date of filing.

A financing statement cannot be the same as the security agreement.

Market Credit Corporation is the secured party in a secured transaction with Northwest Outfitters.Market Credit could also be referred to as 

The payment of Chick's debt to Diamond is guaranteed by Chick's collection of eight restored autos.Their agreement describes Chick's subject property by serial number.To establish Diamond's interest,this is 

The payment of Hu's debt to Ian is guaranteed by Hu's personal property.To give notice of his interest in Hu's property to other creditors,Ian is most likely to 

Capital Projects,Inc.,files a financing statement to provide notice of its security interest in the property of Data Network Corporation.The initial effective term of a financing statement is a period of 

Gina borrows from Hilltop Bank the funds to buy a car.The car secures the debt.Gina defaults on the loan.Hilltop takes possession of the car,planning to sell it to recover some of the unpaid debt.Before Hilltop sells the car or enters into a contract for its sale,Gina can pay the bank what she owes and take back the car.This is 

Middling Credit Corporation asks Little Supply Company to agree to a security agreement that provides for coverage of the proceeds from the sale of after-acquired property.This is 

To create an enforceable security interest,the secured party must give value.

In most situations,a termination statement must be filed or sent within twenty days after the debt is paid.

The payment of Eden Valley Farm's debt to First County Bank is guaranteed by Eden's personal property.This property is 

A security interest is enforceable only if the collateral is in the secured party's possession.

A security agreement does not need to contain a description of the collateral.

David is the secured party in a secured transaction with James,who is the debtor.The collateral is James's collection of baseball cards.David is in possession of the baseball cards.David leaves the cards on his kitchen table during a party and a guest spills beer on them and ruins them.David is 

Hal's Hardware store defaults on a debt to Intrastate Bank,which takes possession of the collateral securing the debt.Intrastate sells the collateral.The proceeds from the sale are applied first to 

The payment of Allen Janitorial Service's debt to Business Finance,Inc.,is guaranteed by Allen's personal property.Business Finance is 

A secured party is any creditor who has a security interest in a debtor's collateral.

Metro Motors & Credit files a financing statement giving notice to the public that it has a secured interest in collateral belonging to Nate's Limousine Service,which is the debtor named in the statement.The financing statement is referred to as