If a Lender Wishes to Automatically Perfect a Security Interest

Multiple Choice

If a lender wishes to automatically perfect a security interest in business equipment, the lender must.

A) Ensure the goods are within the borrower's possession within 20 days of the agreement and file a UCC-1 financing agreement.
B) File a declaration of interest describing the good used as collateral.
C) Notify other creditors doing business with the debtor of the nature of the collateral.
D) Verify by judicial proceeding that the borrower uses the equipment in the ordinary course of business.