Question 1

The person who owes the payment of a secured obligation is the secured party.

Accepted Answer

A) True 
 B)False

Question 2

City Bank's financing statement in collateral owned by Delta Waters Corporation will expire in less than a year.Filed timely,a continuation statement could extend the effectiveness of the financing statement for

Accepted Answer

A) one year. 
B) two years. 
C) five years. 
D) ten years.

Question 3

Filing a financing statement with the appropriate public office is the only way to perfect a purchase-money security interest in consumer goods.

Accepted Answer

A) True 
 B)False

Question 4

Green Landscape Company buys a backhoe on credit from Heavy Equipment Corporation,but does not make a payment on the loan for several months.Heavy repossesses the backhoe by towing it from a public street.Green sues Heavy for breach of the peace.Green will probably

Accepted Answer

A) not prevail,because Heavy did not use judicial process. 
B) not prevail,because the repossession was not a breach of the peace. 
C) prevail,because Green did not default on the loan. 
D) prevail,because the repossession was a breach of the peace.

Question 5

Elias repays his debt,incurred to buy consumer goods,to Fidelity Bank and immediately files a written request for a termination statement.Fidelity

Accepted Answer

A) must comply within one month of receipt of the letter. 
B) must comply within twenty days of receipt of the letter. 
C) must refund $513 to Elias. 
D) need not comply.

Question 6

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

Accepted Answer

A) attach a bright label to Hu's property. 
B) e-mail other potential creditors. 
C) file a financing statement with the appropriate authority. 
D) publish a collection notice in local newspapers.

Question 7

The first security interest to be perfected is the last in priority over any other perfected security interests.

Accepted Answer

A) True 
 B)False

Question 8

Dag is the secured party in a secured transaction with Elmo.In this transaction,Dag

Accepted Answer

A) has a security interest. 
B) owes payment. 
C) owes performance. 
D) owns collateral.

Question 9

A description of collateral as "all the debtor's assets" is too general to reasonably identify the subject of a security agreement.

Accepted Answer

A) True 
 B)False

Question 10

A pledge is a promise by a debtor to take reasonable care of the collateral.

Accepted Answer

A) True 
 B)False

Exam 24: Security Interests in Personal Property

The person who owes the payment of a secured obligation is the secured party.

City Bank's financing statement in collateral owned by Delta Waters Corporation will expire in less than a year.Filed timely,a continuation statement could extend the effectiveness of the financing statement for

Filing a financing statement with the appropriate public office is the only way to perfect a purchase-money security interest in consumer goods.

Green Landscape Company buys a backhoe on credit from Heavy Equipment Corporation,but does not make a payment on the loan for several months.Heavy repossesses the backhoe by towing it from a public street.Green sues Heavy for breach of the peace.Green will probably

Elias repays his debt,incurred to buy consumer goods,to Fidelity Bank and immediately files a written request for a termination statement.Fidelity

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

The first security interest to be perfected is the last in priority over any other perfected security interests.

Dag is the secured party in a secured transaction with Elmo.In this transaction,Dag

A description of collateral as "all the debtor's assets" is too general to reasonably identify the subject of a security agreement.

A pledge is a promise by a debtor to take reasonable care of the collateral.