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Exam 33: Secured Transactions in Personal Property

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Question 21

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Creditors receive an automatic 30-day temporary perfection in negotiable instruments taken as collateral.

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Question 22

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If a breach of the peace might occur:

A) ​self-help repossession is the only option available to obtain the collateral.
B) the creditor must use court action to obtain the collateral.
C) ​the creditor is barred from repossessing the collateral.
D) ​the collateral reverts to the debtor.

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Question 23

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When a state statute requires a security interest in a motor vehicle to be noted on the certificate of title, the security interest is perfected:

Grund, a professional night club musician, financed the purchase of a drum set to be used in his night club act.Under Article 9, the drum set will be classified as a consumer good.

Because the financing statement is intended as notice to third parties, it must be filed in a public place.

When there are two perfected secured creditors in the same collateral: ______.

Consumer goods are classified into different categories based on the physical characteristics of the goods.

Security agreements allow for "blanket" descriptions of collateral that do not provide specific details on the specific type of collateral involved.

Suzy wants to borrow cash from Bruce.She offers him a security interest in her neighbor's diamond ring, which she has been told that she or her sister will receive after their neighbor passes away.Regarding Suzy's proposal, which of the following statements is true?

Under Revised UCC Article 9, a debtor may authorize a financing statement by acquiring the collateral that is subject to the security agreement.

Field warehousing is an example of perfection by the mere by possession of the collateral.

An interest in personal property or fixtures that secures payment or performance of an obligation is called a(n) : ______.

Property that is subject to a security interest is called collateral.

A(n) __________ statement is a document, which may be requested by a paid-up debtor, stating that a security interest is no longer claimed under the specified financing statement.

A creditor must file a financing statement for a security interest to attach.

A debtor must have rights in the collateral for a security interest to attach.

Suppose Harvey is a secured creditor and Joe is the debtor. If Harvey sells the collateral because Joe defaulted, Joe is not liable for any deficiency.

Collateral may change its form and character during the course of a security agreement.

The perfection obtained by filing a financing statement lasts for __________.

Creditors cannot legally request collateral on a previously unsecured loan.