Exam 27: Secured Transactions

Which of the following is true of perfection by possession of collateral?

Perfection of a security interest establishes the right of a secured creditor against other creditors who claim an interest in the collateral.

The term ________ refers to a secured creditor's repossession of collateral on a debtor's default and selling, leasing, or otherwise disposing of it in a commercially reasonable manner.

Kelly borrows $12,000 from Terry Oswald to pay for her mother's surgery. The debt-repayment period is 15 months, but Kelly manages to repay it in 11 months. Which of the following must be filed by Oswald after receiving the final installment of his money?

If a lender extends unsecured credit to a debtor, the creditor takes no interest in any collateral to secure the loan.

What is a deficiency judgment? Explain, and provide some examples.

A ________ is an interest a creditor automatically obtains when he or she extends credit to a consumer to purchase consumer goods.

Financing statements are effective for five years from the date of filing.

Which of the following is a default?

A property in which a security interest is taken is called ________.

Which of the following is considered tangible personal property?

A(n) ________ is a situation in which a creditor has an enforceable security interest against a debtor and can satisfy the debt out of the designated collateral.

In a secured transaction, the debtor is the secured party.

After a debtor's default, if the proceeds from the disposition of collateral are not sufficient to satisfy the debt to the secured party, the debtor is personally liable to the secured party for the payment of the deficiency.

A floating lien is a security interest in property that was not in the possession of the debtor when the security agreement was executed.

The extension of secured credit requires a debtor's pledge of some personal property as collateral for a loan.

Attachment is a situation in which the value of a creditor's collateral is insufficient to satisfy the debt for which it is collated.

Retention of collateral refers to a debtor's repossession of the collateral after paying the debt.

What is a financing statement? What is its significance in perfecting a security interest?

In secured credit, the creditor cannot recover the collateral despite the debtor's defaults on the loan.