Exam 20: Security Interests in Personal Property

Fact Pattern 20-1 (Questions 14-16 apply) 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 20-1.Ira,a police officer,buys an Excel from Fine to drive in his off-duty hours.Ira's Excel is

A secured party can release the collateral described in a filed financing statement only if the debtor has paid the debt.

A future advance against a line of credit must be of the same type as the original advance to be subject to the same collateral.

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

Elias repays his debt,incurred to buy consumer goods,to Fidelity Bank and immediately files a written request for a termination statement.Fidelity

Fact Pattern 20-1 (Questions 14-16 apply) 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 20-1.Holly,a professional driver,buys an Excel from Fine to drive in a Grand Prix race.Holly's Excel is

Dag is the secured party in a secured transaction with Elmo.In this transaction,Dag

Everyday Loans,Inc.,takes possession of Ferbie's stock in Glade Electronics Corporation to perfect Everyday's security interest in the stock.This is

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

Prime Property Investments,Inc.,files a financing statement to provide notice of its security interest in the property of Qwik Breakfast Restaurant.The initial effective term of a financing statement is a period of

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

Proceeds consist of whatever is received when collateral is sold.

Under certain conditions,a purchase-money security interest will take priority over a previous creditor's interest in after-acquired property.

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

A purchase-money security interest arises only when a seller provides a buyer with the "purchase money" to buy goods.

A security interest may attach to intangible collateral but cannot be perfected.

To be valid,a security agreement must contain a description of the collateral.

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

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

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