Exam 34: Secured Transactions in Personal Property

For a security interest to attach,the creditor must file a financing statement.

In a security agreement,the creditor and the debtor agree that the creditor has a security interest.

Mark purchased a very expensive automobile on credit.Within a week,Mark discovered that a tune-up was necessary,for he was in the habit of driving at an excessive rate of speed.When the car was repaired,the bill was more than $1,000.Mark does not have the money to pay for the car repairs or the monthly car payments.The credit company as well as the repair shop are concerned over who has priority of repayment.Who has priority and why?

When a state statute requires a security interest in a motor vehicle to be noted on the certificate of title,the security interest is perfected:

Self-help repossession of collateral upon a buyer's default is contrary to public policy and never is allowed.

Grund,a night club performer,financed the purchase of a drum set to be used in his night club act.The collateral is classified as a consumer good.

Under Revised UCC Article 9,a debtor may authorize a financing statement by acquiring the collateral that is subject to the security agreement.

When a seller sells on credit and is given a security interest in the goods,that interest is called:

Attachment provides creditors with rights.

A financing statement must provide:

When the filing of a financing statement is defective:

Upon the debtor's default,the creditor may sell the collateral at a public or private sale,or lease it to a third party.

A security interest that is effective against third persons as well as against the buyer is called a: