Exam 29: Secured Transactions

Property Investments, Inc., files a financing statement to provide no?tice of its security interest in the property of Qwik's Restaurant. The initial ef?fec?tive term of a financing statement is a period of

Fact Pattern 29-1B Tech Support Corporation uses its office equipment as collat?eral for a loan from United Bank. The bank files a financing statement with the secretary of state in the state in which Tech Support was chartered. One year later, Tech Support changes its name to Vector, Inc. -Refer to Fact Pattern 29-1B. To continue the effectiveness of its perfected interest, United Bank must file

A security interest cannot be perfected without the filing of a financing statement.

The payment of Yves's debt to Zach is guaranteed by Yves's personal property. Their agreement describes Yves's subject property by serial number. To establish Zach's interest, this is

Quality Appliance Company allows Reba to take a set of kitchen appli?ances that she bought from Quality even though she has not paid the full price. Quality's legally sufficient financing statement in the goods need not include

Fact Pattern 29-1A Excel Vehicles, Inc., makes and sells automobiles to auto dealers, including Fine Auto Sales. Fine sells the cars to consumers and businesses. -Refer to Fact Pattern 29-1A. Holly, a professional driver, buys an Excel from Fine to drive in a Grand Prix race. Holly's Excel is

Collateral is the subject of a security interest.

The price that a secured party obtains on a sale of collateral is not all that the creditor can recover on the debt if there is a deficiency.

An improper filing renders a secured party unperfected.

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

To create an enforceable security interest, the secured party must give value.

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

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

For a creditor to have an enforceable security interest, the debtor must have title to the collateral.

Olaf is the creditor in a transaction with Phil. Once certain requirements are met, Olaf's rights will attach, which means that Olaf will have

Best Credit Corporation lends funds to Cody, a consumer, to apply to the cost of a sport utility vehicle (SUV), which is the collateral for the loan. An enforceable security interest requires

A buyer in the ordinary course of business has priority over any security interest created by the seller.

Quotient Financial Corporation is a secured party with a security interest in property owned by Retail Sales Company. Perfection of this security in?ter?est may not protect Quotient Financial against the claim of

Kwik Credit Corporation asks Little Supply Company to agree to a security agreement that provides for coverage of the proceeds from the sale of after-acquired prop?erty. This is

When two conflicting security interests are unperfected, the first to attach has priority.