Exam 34: Secured Transactions in Personal Property

When a consumer gives a creditor a security interest in forthcoming health insurance proceeds,the creditor must file a statement with the insurance company in order to have a perfected security interest.

A(n)__________ statement is a document,which may be requested by a paid-up debtor,stating that a security interest is no longer claimed under the specified financing statement.

A security interest gives a creditor the same protection than is afforded by a right to sue on the debt.

Collateral may change its form and character during the course of a security agreement.

A security agreement must:

A security agreement must be backed by a written record even if the creditor has possession of the collateral.

A debtor may redeem collateral at any time prior to the time that the secured party has disposed of the collateral or entered into a binding contract for resale by tendering the entire obligation that is owed plus any legal costs and expenses incurred by the secured party.

A debtor must have rights in the collateral for a security interest to attach.

The steps in terminating a financing transaction upon full payment by the debtor include the preparation of a termination statement by the creditor and the presentation of the statement to the filing officer,who marks the record "terminated."

Under Revised UCC Article 9,a financing statement must be signed by the debtor.

Generally,a secured creditor who has repossessed collateral may retain the collateral and cancel the debt.

Upon a default by a buyer,the secured seller may resell the collateral:

Consumer goods are not subject to perfection of a security interest.

What is the purpose of a financing statement?

The perfection obtained by filing a financing statement lasts for __________.

_______ occurs when a bank is able to require the debtor account holder to clear all transactions in that account.

When there are two perfected secured creditors in the same collateral:

Creditors receive an automatic 30-day temporary perfection in negotiable instruments taken as collateral.

Perfection of a security interest takes place:

An interest in personal property or fixtures that secures payment or performance of an obligation is called a: