Exam 29: Secured Transactions

Once default has occurred and the secured party has obtained possession of the collateral, the secured party has no more options.

The payment of Dagmar's debt to Evander is guaranteed by Dagmar's personal property. This is

The state office in which a financing statement should be filed depends on the debtor's location.

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

Whatever a secured party obtains on a sale of collateral is all that he or she can collect on the debt.

A perfected purchase-money security interest in inventory can have priority over a conflicting security interest in the same inventory.

When more than one security interest has been perfected in the same collateral, their claims are satisfied proportionately to their value.

Attachment gives the creditor an enforceable security interest in the collateral.

Fact Pattern 29-1A Luxuro Vehicles, Inc., makes and sells automobiles to auto dealers, including MotorPros Auto & Truck Sales. MotorPros sells the cars to consumers and businesses. -Refer to Fact Pattern 29-1A. Nani, a professional driver, buys a customized Luxuro from MotorPros to drive in a Grand Prix race. Nani's Luxuro is

Danica borrows $1,000 from Evermore Bank, using her motorcycle as collateral. To perfect its security interest, the bank must file its financing statement with

The payment of Florida's debt to Guillermo is guaranteed by Florida's personal property. Guillermo is

Filing a financing statement with the appropriate public office is the only way to perfect a security interest.

Ron does not make a payment on his car loan for several months. The dealer, Star Auto, repossesses the car by towing it from a public parking lot. Ron sues Star for breach of the peace. Ron will probably

OK Investments, Inc., files a financing statement to provide notice of its security interest in the property of Pancake House Restaurant. The initial effective term of a financing statement is a period of

A security interest that provides for a security interest in after-acquired property is a floating lien.

Bayside Credit Corporation lends funds to Claude, a consumer, to apply to the cost of a boat, which is the collateral for the loan. An enforceable security interest requires

Olive borrows from Polo and Quennell, using the same collateral for both loans. Only Quennell has a perfected security interest. Olive defaults on both loans. The party with first rights to the collateral is

Fact Pattern 29-1A Luxuro Vehicles, Inc., makes and sells automobiles to auto dealers, including MotorPros Auto & Truck Sales. MotorPros sells the cars to consumers and businesses. -Refer to Fact Pattern 29-1A. Oakes, a police officer, buys a Luxuro from MotorPros to drive in his off-duty hours. Oakes's Luxuro is

Discount Stores, Inc., borrows $5,000 each from EZ Loan Corporation, First National Bank, and Great Products Corporation. Discount uses its "present inventory and any thereafter acquired" to secure the loans from EZ Loan and First National. EZ Loan perfects its interest on April 1, followed by First National on April 5. Discount buys new inventory on April 10 from Great Products and signs a security agreement, giving Great Products a purchase-money security interest in the new inventory. On the same day, Great Products perfects its interest and notifies EZ Loan and First National. Discount takes possession of the new inventory on April 15. On April 20, Discount defaults on all of the loans. Whose security interest has priority

Advances against lines of credit can be subject to a properly perfected security interest in certain collateral.