Exam 23: Credit and Secured Transactions

John bought a television from Jake's Appliance Center for his personal use.John could not pay cash for it,so he signed a note and gave Jake's a security interest in the television.Jake's did not file a financing statement.About six months later,John sold this television to a neighbor,Jane,who did not know about Jake's security interest in it.John stopped making payments on the note to Jake's,and now Jake's wants to repossess the television from Jane.Can Jake's repossess this television from Jane?

Anti-deficiency statutes usually apply only to non-purchase money mortgages.

The debtor is the party that extends credit,and to whom the debt is owed.

No financing statement must be filed for perfection of a security interest if the creditor has physical possession of the collateral.

The right of ________ requires the mortgagor to pay the full amount of the debt (principal,interest,and other costs)incurred by the mortgagee because of the mortgagor's default.

Unsecured credit does not require any collateral to protect the payment of the debt.

________ states permit foreclosure sales.

Security interests may be taken in personal property.

Execution is a(n)________ court order that permits the seizure of the debtor's property that is in the possession of the debtor.

Which method of perfection will provide the best protection against all claims to the debtor's collateral?

Yard Sale Rejects is a retailer that buys unsold items from people who hold yard sales.Yard Sale Rejects has borrowed money from numerous lenders who have liens on its inventory.Below is information about the five parties who hold liens on the inventory of Yard Sale Rejects: 1.State National Bank has a security agreement on the inventory which attached on January 10,2002,but is not perfected. 2.Fidelity National Bank has a security agreement on the inventory which attached on February 15,2002,and was perfected on March 15,2002. 3.Safety National Bank has a security agreement on the inventory which attached on March 5,2002,but was never perfected. 4.Steady National Bank has a security interest on a loan to Yard Sale Rejects to buy a large lot of original pink flamingo yard ornaments,which attached on April,10,2002,and was perfected on May 4,2002. 5.Serenity National Bank has a security agreement on the inventory which attached on June 11,2002,and was perfected on June 20,2002. All of the security interests,except the security interest of Steady National Bank,contain after-acquired property clauses.Indicate the priority of interests of the five banks in the inventory of Yard Sale Rejects.If any information that is crucial to your answer is missing,indicate what that information is,and how it would affect your answer.

To be valid,there is no requirement that a written security agreement be signed by the creditor.

Intangible personal property includes equipment,vehicles,furniture,computers,clothing,and jewelry,while tangible personal property includes securities,patents,trademarks,and copyrights.

Buyers in the ordinary course of business who purchases goods from a merchant take the goods free from any perfected or unperfected security interest in the merchant's inventory,even if the buyer knows of the existence of the security interest.

Robert borrows $500 from a pawn shop,leaving his class ring as collateral.Later,Robert borrows $200 from a bank.Robert signs a security agreement,later filed by the bank,giving the bank a security interest in this ring.If Robert defaults on both loans,who has superior rights to the ring?

When a debtor fails to pay a debt and the value of the collateral is less than the full amount of the debt,which of the following is generally true?

Financing statements must be filed to perfect security interests in motor vehicles,trailers,boats and fixtures.

Which of the following is true about perfection of a security interest in a motor vehicle?

Which of the following is true about termination statements?

Under Article 9 of the Uniform Commercial Code,which of the following is true about a situation where the buyer purchases goods that were subject to a security interest in the inventory of the seller?