FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 24: Secured Transactions

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

Article 9 of the UCC only applies to goods and does not include intangibles such as stocks, bonds or bills of lading.

Correct Answer

verified

Show Answer

Question 2

True/False

Review LaterAdd Note

Review Later

Micky, a mechanic, repaired Daphane's Dodge. Daphane failed to pay the repair bill of $595. Since Micky was still storing the car, he could therefore claim a landlord's lien on the car.

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

Eduardo is starting a floral shop and owns a 10-year-old delivery van. He borrows $50,000 from First National Bank, which takes a security interest in the van. When Eduardo purchases a greenhouse in which to grow plants and a large cooler to keep them fresh, the bank's security interest attaches to these items, which are referred to as

What occurs when a secured party takes back collateral because the debtor has failed to make payments when due?

Great State Bank and First Federal Bank have a security interest in TriColor's equipment. If neither secured party is perfected, the first to sue or repossess has priority over the collateral.

Wedney, Inc. has a purchase money security interest in one of Yoro Chicken's meat processing machines. Wedney filed a financing statement on the day the machine was delivered, perfecting its interest. Great State Bank already had a security interest in the machine. Which party has superior priority rights in the meat processing machine?

Under Article 9 of the UCC, electronic chattel paper may be used as collateral in a secured transaction.

Ken decided to open a retail boat dealership. He expects that many of his sales will be credit sales. What should Ken do to protect his interests in the collateral in the credit sales that he makes?

A PMSI in consumer goods perfects automatically, without filing.

Pharm-Ace holds a patent on a drug. Pharm-Ace used the patent (evidenced by the patent certificate) to secure a $1 million loan from First Bank. The patent is chattel paper.

First Federal loaned Madeline $20,000 to purchase a new van. The van was for Madeline's personal and family use. First Federal's security interest is a purchase money security interest which perfects only upon filing a financing statement.

To perfect a security interest in a negotiable document, Second State Savings and Loan should

First Federal had a perfected security interest in Vicor's printing press. Second Credit had a security interest in the same press, but its interest was not perfected. First Federal takes priority over Second Credit.

There is no way to attach a security interest in electronic chattel paper.

Faith owns a copyright in a book she recently wrote. She applies for a $10,000 loan through Cumberland Bank and wants to use the copyright as collateral. Explain if and how the bank can perfect a security interest in such collateral.

Dieter is a debtor to Maxwell, the secured party. Dieter lives in Ohio and works in Kentucky. Maxwell lives in Indiana and works in Iowa. Where must the secured party file the financing statement?

Masterview, Inc. purchased a new computer system, which included some computer programs. When Masterview developed financial troubles, two competing creditors of Masterview claimed the right to repossess the computer system and the programs. The UCC distinguishes "software" from "goods" and treats them differently for some purposes, which would be important in this situation.

The initial term for which a financing statement will be effective is

Hiram is a debtor to Central Credit Union, a secured party. If Hiram fails to maintain insurance on the collateral, he has likely

Landscaper Lottie used her machinery, employee labor, and her expertise to landscape Opal's new guest home. Opal fails to pay for the landscaping because she has run out of money. Lottie files a lien against the real property. This lien is called a(n)