Exam 24: Security Interests in Personal Property

When a secured debt is paid,the secured party must file a termination statement regardless of the goods' classification.

A buyer in the ordinary course of business has priority over any security interest created by the seller.

Rich Financial,Inc.,files a financing statement regarding a transaction with Supreme Business Company.To be valid,the financing statement must contain all of the following except

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 property.This is

On default,unless the security agreement states otherwise,the secured party has the right to repossess collateral.

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

If collateral consists of consumer goods subject to a purchase-money security interest,the secured party must "purchase" the goods on default.

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

The payment of Nero's debt to Olly is guaranteed by Nero's personal property.Nero is located in Pennsylvania.Olly communicates to the appropriate state official a security agreement that uses only Quality Engineering,the trade name of Nero's business.To perfect Olly's interest,this is

Excel Vehicles, Inc., makes and sells automobiles to auto dealers, including Fine Auto Sales. Fine sells the cars to consumers and businesses. -Refer to Fact Pattern 24-1.A car in Fine's possession is probably

Proceeds consist of whatever is received when collateral is sold.

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

Select Furniture Store sells household consumer goods.To create a purchase-money security interest,Select Furniture must

The concept of a floating lien does not apply to a shifting stock of goods.

The payment of Jose's debt to Klint is guaranteed by Jose's personal property.The process by which Klint can protect himself against the claims of third parties to this property is

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

To qualify as a commercially reasonable sale,a secured party's sale of collateral,after default and repossession,must be public.

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

Sara needs $1,513 to buy textbooks and other school supplies.Tomas agrees to loan Sara $1,513,accepting as collateral Tomas's car.They put their agreement in writing and sign it.Sara keeps possession of the car.Does Tomas have an enforceable security interest How can Tomas let other creditors know of his interest in the car

The payment of Yves's debt to Zac is guaranteed by Yves's personal property.Their agreement describes Yves's subject property by serial number.To establish Zac's interest,this is