Exam 29: B: Secured Transactions

Elias repays his debt,incurred to buy consumer goods,to Finance Bank and immediately files a written request for a termination state?ment.Finance

Super Chef Appliance Company allows Reba to take a set of kitchen appli?ances that she bought from Super Chef even though she has not paid the full price.Super Chef's legally sufficient financing statement in the goods need not include

Efrem owns Fans & Players,a retail sporting goods shop.When Great Hill Lodge,a new ski resort,is built in the area,Efrem decides to expand and borrows a large sum from Hometown Bank.The bank takes a secu?rity interest in Efrem's present inventory and any after-acquired inven?tory as collateral for the loan.The bank properly perfects the security in?terest by filing a financing statement.Efrem's business is profitable,and he begins doubling his inventory.A year later,an avalanche destroys the ski slope and lodge.Efrem's business takes a turn for the worse,and he defaults on his debt to the bank.The bank seeks possession of his en?tire inventory,even though the inventory is twice as large as it was when the loan was made.Efrem claims that the bank has rights to only half of his inventory.Is Efrem correct? Explain.

Attachment gives the creditor an enforceable security interest in the collateral.

Olive borrows from Polo and Quennell,using the same collateral for both loans.Only Quennell has a perfected security interest.Olive defaults on both loans.The party with first rights to the collateral is

OK Investments,Inc. ,files a financing statement to provide no?tice of its security interest in the property of Pancake House Restaurant.The initial ef?fec?tive term of a financing statement is a period of

A buyer in the ordinary course of business has priority unless a previously perfected security interest exists as to the goods.

Once default has occurred and the secured party has obtained possession of the collateral,the secured party has no more options.

A financing statement is effective for no more than six months from the date of filing.

The payment of Laine's debt to Mingo is guaranteed by Laine's personal property.The process by which Mingo can protect himself against the claims of third parties to this property is

The state office in which a financing statement should be filed depends on the debtor's location.

Hal's Hardware store defaults on a debt to Intrastate Bank,which takes possession of the collateral securing the debt.Intrastate sells the collat?eral.The proceeds from the sale are applied first to

A purchase-money security interest in a business's inventory is perfected automatically at the time of a credit sale.

A financing statement must be filed under the debtor's trade name.

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.Nani,a professional driver,buys a customized Luxuro from MotorPros to drive in a Grand Prix race.Nani's Luxuro is

The payment of Florida's debt to Guillermo is guaranteed by Florida's personal property.Guillermo is

The payment of Hu's debt to Ian is guaranteed by Hu's personal prop?erty.To give public notice of his interest in Hu's property,Ian is most likely to

Bayside Credit Corporation lends funds to Claude,a consumer,to apply to the cost of a boat,which is the collateral for the loan.An enforceable security interest requires

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.Oakes,a police officer,buys a Luxuro from MotorPros to drive in his off-duty hours.Oakes's Luxuro is

To create an enforceable security interest,the secured party must give the debtor something of value.