Exam 29: B: Secured Transactions

On the debtor's default,a secured party can take possession of the collateral covered by the security agreement only by court order.

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

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

Experienced Capital Company and First Street Bank are secured parties with security interests in property owned by Grande Oil Corpora?tion.Between these security interests,the first to be filed or perfected has prior?ity over other filed or per?fected security interests in

A security agreement must contain a description of the collateral that reasonably identifies it.

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

When more than one security interest has been perfected in the same collateral,their claims are satisfied proportionately to their value.

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

Clear Sky Credit Corporation asks Dimension Games Company to agree to a security agreement that provides for coverage of the proceeds from the sale of after-acquired prop?erty.This is

Advances against lines of credit can be subject to a properly perfected security interest in certain collateral.

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

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

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?

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

Filing a financing statement with the appropriate public office is the only way to per?fect a security interest.

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

A financing statement cannot be filed electronically.

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

Fact Pattern 29-1A 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