Exam 29: A: Secured Transactions

A security agreement can be filed to perfect a security interest.

If two conflicting security interests are unperfected,neither interest has priority.

Quantum Financial Corporation is a secured party with a security interest in property owned by Revolving Sales Company.Perfection of this security in?ter?est may not protect Quantum against the claim of

Edie needs $1,500 to buy textbooks and other school supplies.Frank agrees to loan Edie $1,500,accepting as collateral Edie's car.They put their agreement in writing and sign it.Edie keeps possession of the car.Does Frank have an enforceable security interest? How can Frank let other creditors know of his interest in the car?

Rollo's Super Store sells goods to consumers and businesses in a rural county in the Midwest.Most of the goods are sold on credit.Rollo's often takes a security interest with the goods as collateral.Classification of the collateral determines

A security interest is enforceable only if the collateral is not in the debtor's possession.

The rights and remedies of secured parties are not cumulative-if a creditor is unsuccessful in enforcing rights by one method,he or she cannot pursue another method.

Fact Pattern 29-1B Call's Farm & Ranch Supply,Inc. ,uses its inventory as collat?eral for a loan from Deland County Bank.The bank files a financing statement with the secretary of state in the state in which Call's was chartered.One year later,Call's changes its name to Big C's,Inc. -Refer to Fact Pattern 29-1B.Deland County Bank's perfection will remain effec?tive for

The payment of Eden's debt to Flem is guaranteed by Eden's personal property.This property is

The payment of Lewellyn's debt to Miklos is guaranteed by Lewellyn's personal property.Miklos is most likely to perfect his interest by

Where or how to perfect a security interest sometimes depends on the classification of collateral.

A buyer in the ordinary course of business takes the goods free from any security interest created by the seller unless the buyer knows of its existence.

Khalil holds a security interest in inventory owned by Luc.Khalil assigns his interest in the inventory to Mal.Mal becomes the secured party of record

Certificate-of-title statutes establish perfection requirements for security interest in certain types of goods.

A security agreement is an agreement that creates or provides for a security interest.

A debtor's signature or authentication is required to create a security interest.

Proceeds from the disposition of collateral after default on the underlying debt are distributed equally among lienholders who have made demands.

Fact Pattern 29-2B General Leasing Company (GLC)buys equipment for use as inventory,borrow?ing $1 million from Helpful Finance Corporation for a security in?terest in the equipment.The next day,GLC borrows $500,000 from Interstate Bank,also for a security interest in the equipment.GLC defaults on both loans. -Refer to Fact Pattern 29-2B.Suppose that two weeks after GLC takes possession of the equipment,Helpful and Interstate file financing statements,with Interstate fil?ing first.In that cir?cum?stance,the party with priority to the equipment is

Gravel & Sand,Inc. ,buys a backhoe on credit from Heavy Equipment Corporation,but does not make a payment on the loan for sev?eral months.Heavy repossesses the backhoe by towing it from a pub?lic street.Green sues Heavy for breach of the peace.Gravel & Sand will probably

Everyday Loans,Inc. ,issues a line of credit in Glade Electronics Corporation under a security agreement.Later,Glade buys new HD TVs to add to its inventory.Everyday has a security interest in the new inventory