Exam 32: Secured Transactions

Kayla's Auto Sales borrows money from Lenders Finance Corporation under a security agreement.With the money,Kayla's buys six Miatas.The Miatas are 

Elias repays his debt,incurred to buy consumer goods,to Fidelity Bank and immediately files a written request for a termination statement.Fidelity 

Khalil holds a security interest in inventory owned by Luc.Khalil protects his claim to the inventory in the event of Luc's default by 

Brass & Woodwind Instruments,Inc.,allows Clifton to keep a professional clarinet that he bought from Brass & Woodwind even though he has not paid the full price.Brass & Woodwind's legally sufficient financing statement in the goods need not include 

The payment of Brian's debt to Chuck is guaranteed by Brian's personal property.This is 

The state office in which a financing statement should be filed depends on the location of the collateral.

A security interest that provides for a security interest in collateral subject to future advances is a floating lien.

Efrem owns Fans & Players,a retail sporting goods shop.When Great Hill Lodge,a new ski resort,is built in the area,Efrem decides to expand and borrows a large sum from Hometown Bank.The bank takes a security interest in Efrem's present inventory and any after-acquired inventory as collateral for the loan.The bank properly perfects the security interest by filing a financing statement.Efrem's business is profitable,and he begins doubling his inventory.A year later,an avalanche destroys the ski slope and lodge.Efrem's business takes a turn for the worse,and he defaults on his debt to the bank.The bank seeks possession of his entire inventory,even though the inventory is twice as large as it was when the loan was made.Efrem claims that the bank has rights to only half of his inventory.Is Efrem correct? Explain.

All security agreements automatically provide for coverage of after-acquired property.

A continuation statement will continue the effectiveness of a financing statement for five years.

A buyer in the ordinary course of business has priority even if a previously perfected security interest exists as to the goods.

A debtor is the person in whose favor there is a security interest.