Exam 29: Security Interests in Personal Property

Which of the following elements is an exception that validates a financing statement which covers goods that are to become fixtures,without it being lapsed?

Cutco Lawn Products Manufacturing Company sells 100 riding lawn mowers to the Smith Hardware Company,a retailer in the same industry.Smith pays for the mowers with a $50,000 loan from the Bass Bank.The Bank takes a security interest in the mowers to secure payment of the loan,and perfects it by filing.Later,Smith sells one of the mowers to Carl,a consumer,who buys in good faith and in the ordinary course of Smith's business.However,Carl knows that the Bank has a security interest in the mowers.Smith defaults on its loan payments,and the Bank moves to repossess all the mowers.Can it repossess the mower sold to Carl?

Bonn,a secured party,sells collateral at a private sale to a good faith purchaser for value after the debtor defaults.Which of the following statements is true with regard to the UCC Secured Transactions Article?

Generally,a buyer in the ordinary course of business can take a property free from any security interest.Which of the following buyer is an exception?

Tom takes his car to be repaired at Smith Auto Garage.Tom was surprised the total of the bill and refuses to pay the total of the work performed.Smith Auto Garage holds onto Tom's car based on a Mechanic Lien.Tom stops make payments on the car to Northshore Credit Union which has a perfected security interest in Tom's car.Smith Auto Garage will get their full amount of their lien prior to Northshore Credit Union receiving funds from a sale of Tom's car.

Which of the following is true about financing statements?

A typewriter,which was subject to a prior UCC security interest,was delivered to Ed Fogel for repair.Fogel,who is engaged in the business of repairing typewriters,repaired the typewriter.However,the owner of the typewriter now refuses to pay for the services performed by Fogel.The state in which Fogel operates his business has a statute which gives Fogel a mechanics lien on the typewriter.Fogel's mechanics lien:

Where the creditor has possession of the collateral,the security agreement may be oral.

Which of the following is true about possession of collateral by secured party as public notice?

According to the Code classifications of collateral,Investment property includes:

Mark filed a financing statement on Daniel's collateral on March 2.However,attachment of this interest did not occur until March 4.Meanwhile,Charles,who had attached a security interest on the same collateral on March 1,filed a financing statement on March 3.Which interest has priority and why?

Under the UCC,a collateral which has been sold in a private sale by a secured party to a good faith purchaser for value,after the debtor's default:

Which of the following is true about perfection of fixtures?

On July 1,Acledes Bank attaches and perfects a security interest in all of the Playo Inc.'s present and after-acquired equipment.On July 15,Richard sells and delivers to a new toy manufacturing machine to Playo Inc.Richard attaches a security interest in the machine on July 16 and perfects it by filing on July 17.Which security interest has priority and why?

A buyer in the ordinary course of business is:

A perfected purchase money security interest in a manufacturer's stock has priority over a conflicting security interest in the same stock if the notification states that the person expects to acquire a purchase money security interest in stock of the debtor and describes the stock.Which of the following priority rules does this statement correspond to?

The two step process for obtaining an enforceable security interest consists of attachment and perfection.

Which of the following statements is true regarding a secured creditor's disposition of the collateral after the debtor's default?

Which of the following is a means of obtaining control over the collateral?

Edith purchases a television set from Big Al's Electronic Emporium,agreeing to pay Big Al in monthly installments on a 12-month payment plan.In order to have a perfect security interest in the television set,Big Al: