Exam 37: Secured Transactions and Suretyship

If Sharpe Finance Co.has a secured interest in Jeff's car and Jeff is in default,in most states,Sharpe may take the car from in front of Jeff's house without getting a court order.

Which of the following is a type of collateral involving rights evidenced by indispensable paper?

A creditor will have to exhaust all the possible legal procedures to try to collect from the principal debtor before he can collect from a conditional guarantor of collection.

Subrogation includes:

If the main purpose of the promisor (surety)is to obtain an economic benefit that he did not previously enjoy,the promise is not within the statute of frauds.

In states which have adopted certificate of title statutes for automobiles,trailers,mobile homes,and boats,perfection of a security interest must include both filing of a financing statement and notation on the certificate of title.

A security interest in electronic chattel paper is perfected by automatic perfection.

The right of exoneration allows the surety to require the principal debtor to pay his obligation to the creditor.

A security interest is ineffective against the debtor until it "attaches."

Dr.Wells purchased a refrigerator for use in storing medications at his office.The refrigerator will be classified as:

With the exception of pledges,a security agreement must:

First Finance Company filed its financing statement for a purchase money security interest in Donald's lawn tractor on March 1.Donald purchased the lawn tractor on February 21.If Donald files for bankruptcy on February 28,the trustee will have priority because the bankruptcy petition is filed before the creditor perfects.

A purchaser of a house who buys the property "subject to" the mortgage is not personally liable for the mortgage,nor is he a surety for the mortgage obligation.

Every consensual secured transaction involves:

The principal debtor's lack of capacity due to his status as a minor may be used by the surety to avoid payment of the obligation.

A tangible or electronic record that evidences both a monetary interest and security interest in or a lease of specific goods is known as:

Willton Bros.obtains from Marbowe Manufacturing a line of credit of $100,000,of which Willton initially uses $27,000 for purchase of inventory.Marbowe may only have a security interest in the inventory that covers the initial $27,000 advance.

A bond,which guarantees the performance of the terms of a contract,is a(n):

A field warehouse,under Article 9 of the UCC,is:

Automatic perfection means that: