Exam 20: Secured Transactions

Jones lives in Illinois, but works in Indiana. Jones borrows $1,000 from Heartland Bank, using her car as collateral. To perfect its security interest, the bank must file its financing statement in at least​

Bagels Café defaults on debts to Country Bank and Hillside Loan Company. Country Bank perfected its security interest before Hillside. The bank takes possession of the collateral in which it has a security interest. On a sale of the collateral, the proceeds will be applied first to​

Sam is the secured party in a transaction with Lilly, who is the debtor. Sam files a financing statement with the appropriate state official. The financing statement must contain​

Lenders Bank files a financing statement regarding a transaction with Metro Construction Company. To be valid, the financing statement must contain all of the following except​

Lena borrows from Mac and Nicole, using the same collateral for both loans. Only Nicole has a perfected security interest. Lena defaults on both loans. The party with first rights to the collateral is​

Authenticate means to sign or to adopt any symbol on an electronic record that verifies the intent to adopt or accept the record.

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

Article 9 of the Uniform Commercial Code governs secured transactions.

A floating lien cannot apply to the proceeds of the sale of after-acquired property.

Most of the customers in any business are buyers in the ordinary course of business.

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

When more than one party claims an interest in the same collateral, a perfected secured party's interest has no priority.

Whatever a secured party obtains on a sale of collateral is all that he or she can collect on the debt.

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

The payment of John's debt to Kirsten is guaranteed by John's personal property. Kirsten is most likely to perfect her interest by​

Fund Credit Corporation asks Gro-Sales Company to agree to a security agreement that provides for coverage of the proceeds from the sale of after-acquired property. This is​

Resource Investment Company and MegaBank are secured parties with security interests in property owned by LNG Gas Corporation. Between these security interests, the first to be filed or perfected has priority over other filed or perfected security interests in​

Fiona borrows $1,000 from Garden State Bank, using her recreational vehicle (RV), which she purchased at Hugo's RV Sales & Service, as collateral. To perfect its security interest, the bank must file its financing statement with​

When consumer goods are involved, a termination statement must be filed within a month after the debt is paid.

Proceeds from the disposition of collateral after default are distributed in a certain order with any surplus generally going to the creditor.