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[Favi's Furniture] Favi Took Out a Loan from First Bank

Question 10

Multiple Choice

[Favi's Furniture] Favi took out a loan from First Bank and executed a security agreement which gave First Bank rights to any after-acquired property as collateral. A year later, Favi took out a loan with Second Bank and executed a security agreement with Second Bank using his new delivery truck as collateral. Favi eventually defaulted on both loans.
-If Favi sells the truck, what is First Bank's best option?


A) Seek repossession of the truck.
B) File a financing statement within 90 days after the debtor receives the proceeds of the sale of the truck.
C) File a financing statement within 60 days after the debtor receives the proceeds of the sale of the truck.
D) File a financing statement within 30 days after the debtor receives the proceeds of the sale of the truck.
E) File a financing statement within 10 days after the debtor receives the proceeds of the sale of the truck.

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