Jack Is an Experienced Transactional Paralegal with Ives & Currier

Jack is an experienced transactional paralegal with Ives & Currier. He has been asked to prepare and file an UCC Financing Statement for a client's loan transaction. The client made a loan from his family trust, the Williams Family Trust, to his son-in-law's business, Xact Machinery Co., with the Trust taking a security interest in two computer-controlled milling machines. Jack gathered all of the necessary information, prepared the Financing Statement, and filed it with the appropriate filing office. After he received a copy of the Financing Statement, the client called Jack and said the Financing Statement was wrong-it said that the secured party was Samuel A. Williams, Trustee, not the Williams Family Trust. Jack knew from his paralegal training and experience that a Financing Statement only served as "notice" to others of the secured party's interest. To learn more about the secured party's interest, another person must contact the secured party. Jack also knew that it is far more important to make sure that the debtor's name is correct. From the options listed below, what is Jack's best response?

A) Explain to Mr. Williams that everything is fine so long as the name of the debtor is correct and correctly spelled.
B) Explain to Mr. Williams that his name as trustee is adequate because the Financing Statement only serves as a notice to others who may claim an interest in the collateral.
C) Apologize to Mr. Williams, and then prepare and file a corrected Financing Statement that uses the name of the Williams Family Trust.
D) Explain to Mr. Williams that everything is fine, but that he will check with one of the attorneys and revise the Financing Statement if instructed to do so.

Correct Answer:

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