Exam 29: A: Secured Transactions

Perfection is usually accomplished by filing a financing statement.

Rich Financial,Inc. ,files a financing statement regarding a transaction with Supreme Business Company.To be valid,the financing statement must contain all of the following except

Delgado is a retail seller of television sets.He sells a 3D HD TV set to Cummings.Cummings cannot pay cash,so she signs a security agreement,paying a certain amount down and agreeing to pay the balance in twelve equal installments.The security agreement gives Delgado a security interest in the set.Cummings makes six payments on time then goes into default because of unexpected financial problems.Delgado repossesses the set.Can he keep it in full satisfaction of the debt? Explain.

Roni,a debtor,wants to confirm the amount of her outstanding secured debt with Swifty Loan Corpora?tion.Roni can ask Swifty to confirm her view of the debt,without charge,every

Darling is the secured party in a secured transaction with Elmo.In this transaction,Darling

A security interest in collateral does not give the secured party a security interest in the proceeds acquired from the sale of that collateral.

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.To continue the effectiveness of its perfected interest,Deland County Bank must file

A security interest is not enforceable after the creditor's rights have at?tached to the collateral.

In most states,a financing statement must be filed centrally in the appropriate state office.

A floating lien "floats" with an item of property,such as a specific piece of inventory,as its ownership transfers from seller to buyer.

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 Helpful perfects its se?curity in?ter?est when GLC takes possession of the equipment.In that cir?cum?stance,the party with pri?ority to the collateral on GLC's default would be

The payment of Dylan's debt to Ezra is guaranteed by Dylan's personal property.This is governed by

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

Sterling Bank wants to perfect its security interest in timber owned by Ridgeline Lumber,Inc.Most likely,a financing statement should be filed with

The perfection of a security interest will always protect a secured party against other third parties having claims to the collateral.

A secured party can release any col?lateral described in the financing statement,thereby terminating its security interest in that collateral.

Reliable Bank's financing statement in collateral owned by Sunsource Energy Corporation will expire in less than a year.With the filing of subsequent continuation statements,the effectiveness of the bank's statement can be continued

On default,a secured party who chooses not to retain the collateral must dispose of it in a commercially reasonable manner.

When the debtor has fully paid the debt,if the secured party perfected the security interest by filing,the debtor is entitled to a termination statement.

Kettlecorn Investments,Inc. ,and Lone Tree Bank are secured parties with security interests in property owned by Metal Fabrication Corporation.Priority between these security interests is generally determined by