Exam 43: Security Interests in Personal Property

Instruments are goods that will be so affixed to real property that they are considered a part of the real property.

The attachment of a security interest to collateral automatically gives the secured party a security interest in the proceeds on the disposal of the collateral by the debtor.

An interest in fixtures that a creditor obtains to secure performance of an obligation is called a(n):

Article 9 of the Uniform Commercial Code does not include general intangibles,such as copyrights and software,in its definition of personal property.

Documents of title include:

If no expiry date is stated in the financing statement,it is valid for six months.

A perfected purchase money security interest in inventory is likely to have priority over a conflicting security interest in the same inventory if the:

A conditional sales contract is an example of a(n):

Explain how a security interest is created.

Denis bought a diamond ring on credit from Pavel as an engagement present for his fiancée.He signed a purchase money security agreement giving Pavel a security interest in the ring until it was paid for.Pavel did not file a financing statement covering its security interest.Denis filed for bankruptcy.The bankruptcy trustee claimed that the diamond ring was part of the bankruptcy estate because Pavel did not perfect his security interest.Pavel claimed that it had a perfected security interest in the ring.Did Pavel have to file a financing statement to perfect its security interest in the diamond ring?

Which of the following is true of perfecting security interests?

A continuation statement can be filed:

To be sufficient,a financial statement must:

Define future advances and explain how covering future advances in the security agreement benefits the creditor.

When the security interest is perfected and the buyer knows of its existence,a buyer in the ordinary course of business:

Milt borrowed $200 from Femi.He agreed verbally that Femi could take possession of his books and keep them until he had repaid the loan in full.The next day,after Femi had the books in her possession,Orin offered to purchase the books from Milt for $150.Milt accepted the offer and took Orin's money to retrieve the books from Femi.Femi,however,refused to give up possession of the books until she was paid in full.Both Milt and Orin now claim that Femi has no rights to the books because she does not have a signed security agreement and has not filed a financing statement.In this case,which of the following statements is true according to the Uniform Commercial Code?

An appliance store sells a television set to Adam for $750 on a conditional sales contract,reserving a security interest in the set until Adam has paid for it.The store does not file a financing statement but relies on attachment for perfection.Adam later borrows money from a credit union and gives it a security interest in the television set neither of them perfected the security interest.Adam defaults on his loans and the credit union tries to claim the set.Under these circumstances,_____.

The law covering security interests in personal property is contained in _____ of the Uniform Commercial Code.

The conflicting interest of an owner of the real property has priority over a perfected security interest in fixtures if the security interest is a purchase money security interest.

A security interest is not legally enforceable against a debtor until it is attached to a particular item or items of the debtor's property.