Exam 32: Secured Transactions

Lena borrows from Mac and Nicol,using the same collateral for both loans.Only Nicol has a perfected security interest.Lena defaults on both loans.The party with first rights to the collateral is

Attachment makes the security interest between a debtor and se?cured party ineffective.

Sally is the secured party in a transaction with Lilly,who is the debtor.Sally files a financing statement with the appropriate state official.The financing statement must contain

The payment of Frida's debt to Gianini is guaranteed by Frida's personal property.Gianini is

All security agreements automatically provide for coverage of after-acquired property.

Secured transactions are governed by the Uniform Commercial Code (UCC).

The payment of Eden's debt to Flem is guaranteed by Eden's personal property.This property is

Jane is the secured party in a secured transaction with Margaret.Jane could also be referred to as the

In most situations,a termination statement must be filed or sent within twenty days after the debt is paid.

The concept of a floating lien applies to a constantly changing inventory.

A financing statement must include the creditor's signature.

For a creditor to have an enforceable security interest,the debtor must have rights in the collateral.

Intermittent advances against a line of credit can be subject to the same collateral.

A financing statement must include a description of the collateral by type or item.

Hal's Hardware store defaults on a debt to Intrastate Bank,which takes possession of the collateral securing the debt.Intrastate sells the collat?eral.The proceeds from the sale are applied first to

Fact Pattern 32-1(Questions 27-28 apply) General Leasing Company (GLC) buys equipment for use as inventory,borrow?ing $1 million from Helpful Finance Corporation for a security in?terest in the equipment.The next day,GLC borrows $500,000 from Interstate Bank,also for a security interest in the equipment.GLC defaults on the loans. -Refer to Fact Pattern 32-1.Suppose that two weeks after GLC takes pos?session of the equipment,Helpful and Interstate file financing state?ments,with Interstate fil?ing first.In that cir?cum?stance,the party with priority to the equipment is

Kathy is the secured party in a transaction with Julie,who is the debtor.The collateral is a 2007 Chevrolet F150 pick-up truck. Kathy files a financing statement in which she describes the collateral as "a vehicle." To perfect Kathy's interest this is

Angie borrows $20,000 from First Line Credit using a field of timber trees as collateral.To perfect its security interest,First Line Credit must file its financing statement with

Advances against lines of credit can be subject to a perfected security interest in identified collateral.

A security interest cannot be perfected without the filing of a financing statement.