Question 1

The concept of perfection: ______.:

Accepted Answer

A) ​creates a security interest. 
B) protects against the claims of others to the collateral. 
C) secures the rights of the creditor against the debtor. 
D) Converts unsecured creditors into secured creditors. 
A) ​creates a security interest. 
B) protects against the claims of others to the collateral. 
C) secures the rights of the creditor against the debtor. 
D) Converts unsecured creditors into secured creditors.

Question 2

Secured transactions are governed by Article 2 of the Uniform Commercial Code.

Accepted Answer

A) True 
 B)False

Question 3

What is the purpose of a financing statement?

Accepted Answer

A) ​to meet UCC accounting requirements under Article 9 
B) to create a security interest 
C) ​to amend a security agreement 
D) to alert third persons that a creditor has a security interest in the collateral described​ 
A) ​to meet UCC accounting requirements under Article 9 
B) to create a security interest 
C) ​to amend a security agreement 
D) to alert third persons that a creditor has a security interest in the collateral described​

Question 4

Whatever is received upon the sale, exchange, collection or other disposition of collateral is known as: ______.

Accepted Answer

A) ​goods. 
B) paper. 
C) proceeds. 
D) security interest. 
A) ​goods. 
B) paper. 
C) proceeds. 
D) security interest.

Question 5

Attachment provides creditors with rights against debtors.

Accepted Answer

A) True 
 B)False

Question 6

Electronic chattel paper is a record of a right to payment or property that is stored in an electronic medium.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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.

Accepted Answer

A) True 
 B)False

Question 9

All of the following are elements of attachment except: ______.

Accepted Answer

A) ​the filing of a financing statement 
B) a security agreement 
C) value received by the debtor 
D) the debtor has rights in the collateral 
A) ​the filing of a financing statement 
B) a security agreement 
C) value received by the debtor 
D) the debtor has rights in the collateral

Question 10

A(n) ______security interest is effective against third persons as well as against the buyer.

Accepted Answer

A) ​universal. 
B) prohibitive. 
C) perfected. 
D) protective. 
A) ​universal. 
B) prohibitive. 
C) perfected. 
D) protective.

Question 11

When the filing of a financing statement is defective: ______.

Accepted Answer

A) ​the security interest is lost. 
B) the filing fails to perfect the security interest. 
C) ​the security interest is perfected through the court's application of equitable principles. 
D) ​the public notice of the creditor's interest is still effective. 
A) ​the security interest is lost. 
B) the filing fails to perfect the security interest. 
C) ​the security interest is perfected through the court's application of equitable principles. 
D) ​the public notice of the creditor's interest is still effective.

Question 12

Unsecured creditors have equal priority and stand behind secured creditors for repayment of their debts.

Accepted Answer

A) True 
 B)False

Question 13

All of the following are elements of a security agreement except: ______.

Accepted Answer

A) ​identification of the parties involved. 
B) a reasonable description of the collateral. 
C) demonstration that the parties intended for the creditor intends to have a security interest. 
D) statement of the amount of the debt. 
A) ​identification of the parties involved. 
B) a reasonable description of the collateral. 
C) demonstration that the parties intended for the creditor intends to have a security interest. 
D) statement of the amount of the debt.

Exam 33: Secured Transactions in Personal Property

The concept of perfection: ______.:

Secured transactions are governed by Article 2 of the Uniform Commercial Code.

What is the purpose of a financing statement?

Whatever is received upon the sale, exchange, collection or other disposition of collateral is known as: ______.

Attachment provides creditors with rights against debtors.

Electronic chattel paper is a record of a right to payment or property that is stored in an electronic medium.

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

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.

All of the following are elements of attachment except: ______.

A(n) ______security interest is effective against third persons as well as against the buyer.

When the filing of a financing statement is defective: ______.

Unsecured creditors have equal priority and stand behind secured creditors for repayment of their debts.

All of the following are elements of a security agreement except: ______.

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