Question 1

A security interest is not enforceable after the creditor's rights have at?tached to the collateral.

Accepted Answer

A) True 
 B)False

Question 2

Sara needs $1,500 to buy textbooks and other school supplies.Tomas agrees to loan Sara $1,500,accepting as collateral Sara's car.They put their agreement in writing and sign it.Sara keeps possession of the car.Does Tomas have an enforceable security interest? How can Tomas let other creditors know of his interest in the car?

Accepted Answer

The three requirements for an enforceabl...

Question 3

The payment of Yves's debt to Zac is guaranteed by Yves's personal property.Their agreement identifies Yves's property by serial number.To establish Zac's interest,this is most likely

Accepted Answer

A)  irrelevant.
B)  not sufficient.
C)  sufficient if it accurately describes the collateral.
D)  sufficient unless it is too tedious to review.E) B) and C)
F) C) and D)

Question 4

The "first-in-time" rule means that an unperfected security interest takes priority over a perfected security interest if the unperfected security interest was attached first.

Accepted Answer

A) True 
 B)False

Question 5

A financing statement cannot be the same as the security agreement.

Accepted Answer

A) True 
 B)False

Question 6

A financing statement is effective for five years from the date of filing.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

A buyer in the ordinary course of business cannot know about the existence of a perfected security interest.

Accepted Answer

A) True 
 B)False

Question 9

Jason is the creditor in a transaction with Carol,who is the debtor.Which of the following requirements is NOT necessary for Jason to have an enforceable security interest?

Accepted Answer

A)  The collateral must be in Jason's possession,or there must be a written security agreement.
B)  Jason must give value to Carol.
C)  Carol must have rights to the collateral.
D)  The collateral must be tangible.E) C) and D)
F) B) and D)

Question 10

The payment of Hu's debt to Ian is guaranteed by Hu's personal prop?erty.To give notice of his interest in Hu's property to other creditors,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.E) None of the above
F) B) and C)

Question 11

A debtor is the person in whose favor there is a security interest.

Accepted Answer

A) True 
 B)False

Question 12

The method of perfecting a security interest does NOT depend on the classification of the collateral.

Accepted Answer

A) True 
 B)False

Exam 32: Secured Transactions

A buyer in the ordinary course of business cannot know about the existence of a perfected security interest.

Correct Answer
verified

The method of perfecting a security interest does NOT depend on the classification of the collateral.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

A financing statement cannot be the same as the security agreement.

Correct Answer
verified

The payment of Yves's debt to Zac is guaranteed by Yves's personal property.Their agreement identifies Yves's property by serial number.To establish Zac's interest,this is most likely

Correct Answer
verified

The "first-in-time" rule means that an unperfected security interest takes priority over a perfected security interest if the unperfected security interest was attached first.

Correct Answer
verified

A security interest is not enforceable after the creditor's rights have at?tached to the collateral.

Correct Answer
verified

Correct Answer
verified
The three requirements for an enforceabl...
View Answer

A debtor is the person in whose favor there is a security interest.

Correct Answer
verified

A financing statement is effective for five years from the date of filing.

Correct Answer
verified

Jason is the creditor in a transaction with Carol,who is the debtor.Which of the following requirements is NOT necessary for Jason to have an enforceable security interest?

Correct Answer
verified

Exam 32: Secured Transactions

A buyer in the ordinary course of business cannot know about the existence of a perfected security interest.

Correct AnswerverifiedShow Answer

The method of perfecting a security interest does NOT depend on the classification of the collateral.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A financing statement cannot be the same as the security agreement.

Correct AnswerverifiedShow Answer

The payment of Yves's debt to Zac is guaranteed by Yves's personal property.Their agreement identifies Yves's property by serial number.To establish Zac's interest,this is most likely

Correct AnswerverifiedShow Answer

The "first-in-time" rule means that an unperfected security interest takes priority over a perfected security interest if the unperfected security interest was attached first.

Correct AnswerverifiedShow Answer

A security interest is not enforceable after the creditor's rights have at?tached to the collateral.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe three requirements for an enforceabl...View AnswerShow Answer

A debtor is the person in whose favor there is a security interest.

Correct AnswerverifiedShow Answer

A financing statement is effective for five years from the date of filing.

Correct AnswerverifiedShow Answer

Jason is the creditor in a transaction with Carol,who is the debtor.Which of the following requirements is NOT necessary for Jason to have an enforceable security interest?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The three requirements for an enforceabl...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified