Exam 28: Secured Transactions and Suretyship

Alice hired Robert as an associate accountant in Alice's accounting firm. To protect herself against the possibility that Robert might be dishonest, Alice obtained a ¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬__________ bond.

Which of the following is true of the rule of priorities regarding the disposal of a debtor's property when the debtor defaults?

In strict foreclosure, a secured creditor can accept the collateral in full satisfaction or partial satisfaction of the debt.

A security interest in consumer goods may be perfected without filing a financing statement.

Butch bought a bulldozer for his construction business from Construction Supply (CS), which properly perfected its security interest in the machine. The bulldozer required repairs; Butch took it to Mike Mechanic who performed $1100 worth of repair work on it. Butch then failed to pay either CS or Mechanic, and CS appeared at Mechanic's shop to repossess the machine. As between Mechanic and CS, who gets paid first?

A written security agreement is not needed when the debtor pledges collateral to the creditor.

If two creditors have a security interest in the same goods, the most recent perfection prevails.

Accessions are goods that are physically united with other goods in such a manner that the identity of the original good is lost.

A lien is security obtained through operation of law.

A creditor who first files a financing statement will usually not have to attach its interest in collateral.

A lien that is expanded to cover any additional property that is acquired by the debtor while the debt is outstanding is known as a:

A buyer of consumer goods, for value, who has no knowledge of any security interest, takes

The financing statement is effective for ten years from the date of filing.