Exam 24: Secured Transactions

Maddie enters into a secured consumer debt transaction with Friendly Bank.When Maddie pays the loan in full,Friendly Bank is required to file a statement indicating that it no longer claims a secured interest in the collateral.This statement must be filed within one month from the date the debt is fully paid.

Spicy & Hot,Inc.is interested in expanding its Mexican food restaurant into a Mexican food catering business.Spicy & Hot,Inc.buys a new delivery van from Van World.Spicy & Hot,Inc.is a buyer in the ordinary course of business when purchasing the van.

Which of the following parties can defeat a perfected security interest?

What occurs when a secured party takes back collateral because the debtor has failed to make payments when due?

If repossessed collateral is sold or otherwise disposed of by the creditor,then the time,place,manner,and method of disposal must be

The property subject to a security interest is called

Dieter is a debtor to Maxwell,the secured party.Dieter lives in Ohio and works in Kentucky.Maxwell lives in Indiana and works in Iowa.Where must the secured party file the financing statement?

The initial term for which a financing statement will be effective is

Faith owns a copyright in a book she recently wrote.She applies for a $10,000 loan through Cumberland Bank and wants to use the copyright as collateral.Explain if and how the bank can perfect a security interest in such collateral.

There is no way to attach a security interest in electronic chattel paper.

Explain the difference between attachment and perfection.

Hiram is a debtor to Central Credit Union,a secured party.If Hiram fails to maintain insurance on the collateral,he has likely

First Federal had a perfected security interest in Vicor's printing press.Second Credit had a security interest in the same press,but its interest was not perfected.First Federal takes priority over Second Credit.

Country Bank,located in Indiana,loaned Chmelik $5,000 and obtained a security interest in a copyright Chmelik owns.Chmelik lives in Illinois,but works in Indiana.In order to perfect its interest,Country Bank files a financing statement in Indiana.The financing statement provides Chmelik's correct name,his business address,and a reasonable description of the copyright used as collateral.Is the financing statement sufficient?

Eduardo is starting a floral shop and owns a 10-year-old delivery van.He borrows $50,000 from First National Bank,which takes a security interest in the van.When Eduardo purchases a greenhouse in which to grow plants and a large cooler to keep them fresh,the bank's security interest attaches to these items,which are referred to as

Wedney,Inc.sold a meat processing machine to Yoro Chickens,taking a security interest in the machine.Yoro Chickens defaulted on the loan.Wedney repossessed the machine.Wedney would like to retain the machine to use as a model.Which of the following statements is correct?

In terms of collateral,which of the following would be categorized as "equipment"?

To perfect a security interest in a negotiable document,Second State Savings and Loan should

Florence borrows $1,500 from Fremont,leaving her gold necklace with Fremont as collateral.Two weeks earlier,Florence had borrowed $1,000 from Corner Bank.Florence signed a security agreement and a financing statement giving Corner Bank a security interest in the same gold necklace.The financing statement is filed in the appropriate location.If Florence defaults on both loans,which creditor has the superior rights to the necklace?

Masterview,Inc.purchased a new computer system,which included some computer programs.When Masterview developed financial troubles,two competing creditors of Masterview claimed the right to repossess the computer system and the programs.The UCC distinguishes "software" from "goods" and treats them differently for some purposes,which would be important in this situation.