Exam 20: Security Interest in Personal Property

When two parties have perfected security interests in the same collat?eral,neither party has priority.

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

Qwik Credit Corporation lends $20,000 to Ross.A financing statement is filed on May 1,but the security agreement is not signed until Ross gets the money on May 4.Ross also borrows money from State Bank,which advances funds,files a financing statement,and signs a security agree?ment on May 2.Ross used the same property as collateral for both loans.In a dispute between the lenders over rights to the collateral,Qwik Credit will

A secured party can release the col?lateral described in a filed fi?nancing statement only if the debtor has paid the debt.

County Bank wants to perfect its security interest in collateral owned by Delta Sales Company.Most likely,a financing statement should be filed with

When two parties have unperfected security interests in the same collat?eral,neither party has priority.

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

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

A financing statement is effective for five years from the date of filing.

Collateral is the subject of a security interest.

Each of the following owns a Cut-Rite brand food processor: Diner's Res?taurant;Eve,a consumer;Frank,a cooking-school student;and Great Deals,a discount store.As collateral,the processor that would be classi?fied as inventory is owned by

Bob,a forest-service engineer,buys a four-wheel-drive vehicle to use only for off-road recreational use.Under UCC Article 9,this vehicle would likely be characterized as

Fact Pattern 20-3 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 the loans. -Refer to Fact Pattern 20-3.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

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

After the proper disposition of collateral,if the secured party has not col?lected all that the debtor owes,the creditor must accept the deficiency.

Regional Bank wants to perfect its security interest in timber owned by Standing Timber,Inc.Most likely,a financing statement should be filed with

When a secured debt is paid,the secured party must file a termination statement regardless of the goods' classification.

To have an enforceable security interest in collateral that is in the pos?ses?sion of the secured party,there must be a written security agreement.

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

Fancee Furniture Store sells household consumer goods.To create a pur?chase-money security interest,Fancee Furniture must