Exam 30: Secured Transactions

Which of the following was the result in the case in the text In re Girolamo Afonica,the case in which a debtor's bankruptcy discharge was challenged by a bank that held a security interest in a vehicle that the plaintiff,without notice to the bank,transferred to a junk dealer because his ex-wife did not like it sitting in her driveway?

Which of the following is true if a buyer of a consumer good subject to purchase-money security interest later sells the good?

Generally,unsecured parties have priority over secured creditors.

For how long is a financing statement valid under the UCC,once the statement has been filed with a correct agency?

Which of the following is true regarding what may constitute collateral?

Which of the following was the result in the bankruptcy case in the text,In re Robert O.Troupe and Dawn Lynn Troupe,involving the issue of whether a tractor dealer's failure to file a financing statement rendered its purchase money security interest unperfected because the tractor was equipment used for business purposes,or whether the security interest was automatically perfected as an interest in a consumer good?

Trevor goes to the AutoShop and purchases a new truck on credit for his business.He signs an agreement with AutoShop under which the truck is the collateral for AutoShop's loan to him.Trevor then goes to First Bank and signs an agreement for a loan so that he can buy supplies for his business.Do either of these agreements involve a purchase-money security interest?

The property that is subject to a security interest is called collateral.

If a bank wants to ensure it will not have to expend efforts in repossession,which of the following methods of perfection should it use?

[Repo] Meredith sells used cars and trucks.She sold a used pick-up truck to Jill and a used convertible to Caleb.She properly obtained a security interest in both vehicles.Both Jill and Caleb defaulted on payments owed to Meredith for the vehicles.Meredith was under the belief that her only option was to take possession of the collateral.She decided to repossess Jill's pick-up at Jill's house.Meredith slipped into Jill's driveway after midnight and started the truck's engine.Jill immediately ran out and confronted Meredith.Meredith shoved Jill away and drove off in the pick-up truck.Meredith was able to repossess Caleb's convertible in a public parking lot with no altercation with him. -Which statement is correct regarding Meredith's belief that her only option was to take possession of the collateral?

Which statement is correct regarding Meredith's repossession of the pick-up truck?

Which of the following is true regarding a security interest in consumer goods?

Which of the following is an amendment to a financing statement that states that the debtor has no obligation to the secured party?

Which of the following is a writing that indicates both a monetary obligation and a security interest in specific goods?

When perfection by possession occurs,the parties must have a written security agreement.

Which of the following under the UCC is a good used or bought for use primarily for personal,family,or household purposes?

Value is consideration,according to the UCC.

If First Bank had properly perfected its security interest,which creditor's interest would take priority?

Does the fact that the financing statement was filed four years ago affect the bank's claim?

Set forth the steps that a creditor must take to become a secured party.