Exam 20: Secured Transactions

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

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

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

Jim files a uniform 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. This uniform statement form is now used in

A continuation statement is effective only if it is filed within six months before the expiration of a financing statement.

A floating lien cannot apply to the proceeds of a sale of after-acquired property.

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

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

Valley Furniture Store sells household consumer goods on credit for which Valley files a financing statement to perfect a security interest in the goods. With the filing of subsequent continuation statements, the effectiveness of the statement can be continued

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

Attachment makes the security interest between a debtor and secured party ineffective.

Corporate Bank wants to perfect its security interest in inventory owned by Outdoor Outfitters, Inc. Most likely, a financing statement should be filed with