Exam 29: Secured Transactions

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

The payment of Dagmar's debt to Evander is guaranteed by Dagmar's personal property.This is

Whatever a secured party obtains on a sale of collateral is all that he or she can collect on the debt.

Fact Pattern 29-1A (Questions A11-A13 apply) Luxuro Vehicles,Inc.,makes and sells automobiles to auto dealers,including MotorPros Auto & Truck Sales.MotorPros sells the cars to consumers and businesses. -Refer to Fact Pattern 29-1A.Nani,a professional driver,buys a customized Luxuro from MotorPros to drive in a Grand Prix race.Nani's Luxuro is

Ron does not make a payment on his car loan for several months.The dealer,Star Auto,repossesses the car by towing it from a public parking lot.Ron sues Star for breach of the peace.Ron will probably

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

Danica borrows $1,000 from Evermore Bank,using her motorcycle as collateral.To perfect its security in?terest,the bank must file its financing statement with

Discount Stores,Inc.,borrows $5,000 each from EZ Loan Corporation,First National Bank,and Great Products Corporation.Discount uses its "present inventory and any thereafter acquired" to secure the loans from EZ Loan and First National.EZ Loan perfects its interest on April 1,fol?lowed by First National on April 5.Discount buys new inventory on April 10 from Great Products and signs a security agreement,giving Great Products a purchase-money security interest in the new inven?tory.On the same day,Great Products perfects its interest and notifies EZ Loan and First National.Discount takes possession of the new inven?tory on April 15.On April 20,Discount defaults on all of the loans.Whose security interest has priority?

Any creditor who has a security interest in a debtor's collateral is the secured party.

A security interest that provides for a security interest in after-acquired property is a floating lien.

A continuation statement will continue the effectiveness of a financing statement for five years.

Mona lives in New Jersey,but she works in New York.Mona borrows $1,000 from National Bank,using her motorcycle as collateral.To perfect its security in?terest,the bank must file its financing statement in at least

OK Investments,Inc.,files a financing statement to provide no?tice of its security interest in the property of Pancake House Restaurant.The initial ef?fec?tive term of a financing statement is a period of

Saf-T Lenders,Inc.,takes possession of Tiara's stock in Urgent Care Corporation to perfect Saf-T's security interest in the stock.This is

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

Fact Pattern 29-1A (Questions A11-A13 apply) Luxuro Vehicles,Inc.,makes and sells automobiles to auto dealers,including MotorPros Auto & Truck Sales.MotorPros sells the cars to consumers and businesses. -Refer to Fact Pattern 29-1A.A car in MotorPros's possession is most likely

Olive borrows from Polo and Quennell,using the same collateral for both loans.Only Quennell has a perfected security interest.Olive defaults on both loans.The party with first rights to the collateral is

The payment of Hu's debt to Ian is guaranteed by Hu's personal prop?erty.To give public notice of his interest in Hu's property,Ian is most likely to

Once default has occurred and the secured party has obtained possession of the collateral,the secured party has no more options.

A financing statement is effective for no more than six months from the date of filing.