Exam 32: Secured Transactions

The payment of John's debt to Kirsten is guaranteed by John's personal property.Kirsten is most likely to perfect her interest by

City Bank's financing statement in collateral owned by Delta Waters Corporation will expire in less than a year.Filed timely,a continuation statement could extend the effectiveness of the financing statement for

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 Helpful perfects its se?curity in?ter?est when GLC takes possession of the equipment.In that cir?cum?stance,the party with pri?ority to the collateral on GLC's default would be

A security interest is enforceable only if the collateral is in the secured party's possession.

Middling Credit Corporation asks Little Supply Company to agree to a security agreement that provides for coverage of the proceeds from the sale of after-acquired prop?erty.This is

Joan borrows money from Jake under a security agreement.After borrowing the money,Joan purchases a new sports car.The sports car is considered

Jim files a financing statement giving notice to the public that he has a secured interest in collateral belonging to Phil,who is the debtor named in the statement.The financing statement is referred to as the

Idle Investments,Inc.,and Harbor Bank are secured parties with secu?rity interests in property owned by GR8 Manufacturing Corporation.Priority between these security interests is generally determined by

The payment of Eric's debt to Ryan is guaranteed by Eric's 2002 Volkswagen Bug.Ryan filed the financing statement on July 1,2012.If Ryan does nothing else,the financing statement will be effective until

The last security interest to be perfected is the first in priority over any other perfected security interests.

The first security interest to be perfected is the last in priority over any other perfected security interests.

Summit Credit Corporation lends funds to Toby,a consumer,to apply to the cost of a sport utility vehicle (SUV),which is the collateral for the loan.An enforceable security interest also requires

The office in which a financing statement should be filed depends on the creditor's location.

Quotient Financial Corporation is a secured party with a security inter?est in property owned by Retail Sales Company.Perfection of this secu?rity in?ter?est may not protect Quotient Financial against the claim of

The failure to pay a debt as promised is known as default.

Most of the customers in any business are buyers in the ordinary course of business.

Mona borrows $1,000 from National Bank,using her motorcycle as col?lateral.To perfect its security in?terest,the bank must file its financing statement with

The payment of Brian's debt to Chuck is guaranteed by Brian's personal property.This is

Peter borrows $5,000 from Willy in a secured transaction using Peter's sports car as collateral.Peter then borrows $7,000 from Jane using the same sports car as collateral.Neither Willy nor Jane perfects their security interests.Peter defaults on the loans.The party with priority is

Corporate Bank wants to perfect its security interest in inventory owned by Direct Sales Company.Most likely,a financing statement should be filed with