Exam 29: Security Interests in Personal Property

A secured creditor repossesses the collateral from the debtor and sells it to satisfy the debt.Which of the following has the first claim on the proceeds of the sale?

Which of the following are automatically covered as of the time the security interest attaches to the collateral?

Wonder Widget Company manufactures widgets that are sold to the retailers.The retailers,in turn,sell these widgets to consumers for their own use.These widgets are:

Article 9 of the UCC which governs secured transactions has been adopted in how many states?

If the debtor defaults on his agreement with the creditor,the creditor repossesses the collateral,and the creditor then sells the collateral.However,the creditor may also retain any surplus if the amount realized on the sale exceeds the amount of the debtor's debt.

A security interest is not legally enforceable against a debtor,if it is not attached to one or more particular items of the debtor's property.

With regard to a prior perfected security interest in goods for which a financing statement has been filed,which of the following parties is most likely to have a superior interest in the same collateral?

Under revised Article 9,the UCC allows a security agreement to be created by the consumer online.

A security agreement may cover after-acquired property of the debtor.

For which of the following is the filing of a financing statement necessary for perfection to occur?

Which of the following is an option for the secured creditor when the debtor defaults?

If the debtor defaults on his agreement with the creditor,one of the creditor's options is to repossess the collateral and then sell it.

Acorn Marina Inc.sells and services boat motors.On April 1,1989,Acorn financed the purchase of its entire inventory with GAC Finance Company.GAC required Acorn to execute a security agreement and financing statement covering the inventory and proceeds of sale.On April 14,1989,GAC filed the financing statement pursuant to the UCC Secured Transactions Article.On April 27,1989,Acorn sold one of the motors to Mike for use in his charter business.Mike,who had once worked for Acorn,knew that Acorn regularly financed its inventory with GAC.Acorn has defaulted on its obligations to GAC.The motor purchased by Mike is:

What are the three options available to a secured creditor regarding the collateral if the debtor defaults?

The Total Household Appliance store sells a refrigerator to Alvin,on the condition of making payments in installments.In this case,the store:

_____ refer(s)to the goods used or bought primarily for personal purposes.

Which of the following is the only form of perfection that occurs without the giving of public notice?

Article 2 of the UCC governs secured credit transactions.

Perfection by public filing of a financing statement in the appropriate public office serves as a(n)_____ notice to the world.

What section of the UCC governs the prioritization of competing security interest in collateral for secured loans?