Question 1

Metro Motors files a financing statement giving notice to the public that it has a secured interest in collateral belonging to Nate's Limousine Service, which is the debtor named in the statement. A uniform financing statement used in all states is​

Accepted Answer

A)   ​the UCC Financing Statement.
B)   ​the UCC Collateral Form.
C)   ​Form UCC-2.
D)   ​none of the choices.E) C) and D)
F) B) and C)

Question 2

Fact Pattern 20-1
General Leasing Company (GLC)  buys equipment for use as inventory, borrowing $1 million from Business Finance Corporation for a security interest in the equipment. The next day, GLC borrows $500,000 from Commercial Bank, also for a security interest in the equipment. GLC defaults on the loans.
-Refer to Fact Pattern 20-1.Suppose that Business Finance perfects its security interest when GLC takes possession of the equipment. In that circumstance, the party with priority to the collateral on GLC's default would be​

Accepted Answer

A)   ​GLC.
B)   ​Business Finance and Commercial Bank proportionately.
C)   ​Business Finance only.
D)   ​Commercial Bank only.E) All of the above
F) A) and D)

Question 3

Kyla holds a security interest in inventory owned by Luc. Kyla protects her claim to the inventory in the event of Luc's default by​

Accepted Answer

A)   ​assignment.
B)   ​perfection.
C)   ​redemption.
D)   ​retention.E) B) and C)
F) A) and D)

Question 4

Market Credit Corporation is the secured party in a secured transaction with Northwest Outfitters. Market Credit could also be referred to as​

Accepted Answer

A)   ​the debtor.
B)   ​the secured creditor.
C)   ​the security interest.
D)   ​the filing officer.E) None of the above
F) All of the above

Question 5

Credit Financing, Inc., and Equity Lending Company are secured parties with security interests in property owned by Fleet Shipping Corporation. Priority between these security interests is generally determined by​

Accepted Answer

A)   ​the amount of the claim.
B)   ​the custom in the trade.
C)   ​the time of perfection or attachment.
D)   ​the "float" of the liens.E) None of the above
F) A) and C)

Question 6

The payment of Valley Farm's debt to County Bank is guaranteed by the farm's personal property. This property is​

Accepted Answer

A)   ​a future advance.
B)   ​after-acquired property.
C)   ​a floating lien.
D)   ​collateral.E) All of the above
F) None of the above

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

A security interest that provides for a security interest in collateral subject to future advances is a floating lien.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Fiscal Credit Corporation asks Global Industries, Inc., to agree to a security agreement that provides for coverage of the proceeds from the sale of after-acquired property. This is​

Accepted Answer

A)   ​the first-in, first-out rule.
B)   ​a floating lien.
C)   ​a violation of most state laws.
D)   ​a future advance.E) B) and C)
F) None of the above

Question 11

Don repays his debt, incurred to buy consumer goods, to EZ Retail Credit and immediately files a written request for a termination statement. EZ​

Accepted Answer

A)   ​must comply within one month of receipt of the letter.
B)   ​must comply within twenty days of receipt of the letter.
C)   ​must refund $500 to Don.
D)   ​need not comply.E) All of the above
F) B) and C)

Question 12

The last security interest to be perfected is the first in priority over any other perfected security interests.

Accepted Answer

A) True 
 B)False

Exam 20: Secured Transactions

The payment of Valley Farm's debt to County Bank is guaranteed by the farm's personal property. This property is

Correct Answer
verified

The last security interest to be perfected is the first in priority over any other perfected security interests.

Correct Answer
verified

Kyla holds a security interest in inventory owned by Luc. Kyla protects her claim to the inventory in the event of Luc's default by

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Credit Financing, Inc., and Equity Lending Company are secured parties with security interests in property owned by Fleet Shipping Corporation. Priority between these security interests is generally determined by

Correct Answer
verified

Fiscal Credit Corporation asks Global Industries, Inc., to agree to a security agreement that provides for coverage of the proceeds from the sale of after-acquired property. This is

Correct Answer
verified

Don repays his debt, incurred to buy consumer goods, to EZ Retail Credit and immediately files a written request for a termination statement. EZ

Correct Answer
verified

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

Correct Answer
verified

A security interest that provides for a security interest in collateral subject to future advances is a floating lien.

Correct Answer
verified

Market Credit Corporation is the secured party in a secured transaction with Northwest Outfitters. Market Credit could also be referred to as

Correct Answer
verified

Metro Motors files a financing statement giving notice to the public that it has a secured interest in collateral belonging to Nate's Limousine Service, which is the debtor named in the statement. A uniform financing statement used in all states is

Correct Answer
verified

Exam 20: Secured Transactions

The payment of Valley Farm's debt to County Bank is guaranteed by the farm's personal property. This property is​

Correct AnswerverifiedShow Answer

The last security interest to be perfected is the first in priority over any other perfected security interests.

Correct AnswerverifiedShow Answer

Kyla holds a security interest in inventory owned by Luc. Kyla protects her claim to the inventory in the event of Luc's default by​

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Credit Financing, Inc., and Equity Lending Company are secured parties with security interests in property owned by Fleet Shipping Corporation. Priority between these security interests is generally determined by​

Correct AnswerverifiedShow Answer

Fiscal Credit Corporation asks Global Industries, Inc., to agree to a security agreement that provides for coverage of the proceeds from the sale of after-acquired property. This is​

Correct AnswerverifiedShow Answer

Don repays his debt, incurred to buy consumer goods, to EZ Retail Credit and immediately files a written request for a termination statement. EZ​

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A security interest that provides for a security interest in collateral subject to future advances is a floating lien.

Correct AnswerverifiedShow Answer

Market Credit Corporation is the secured party in a secured transaction with Northwest Outfitters. Market Credit could also be referred to as​

Correct AnswerverifiedShow Answer

Metro Motors files a financing statement giving notice to the public that it has a secured interest in collateral belonging to Nate's Limousine Service, which is the debtor named in the statement. A uniform financing statement used in all states is​

Correct AnswerverifiedShow Answer

The payment of Valley Farm's debt to County Bank is guaranteed by the farm's personal property. This property is

Correct Answer
verified

Correct Answer
verified

Kyla holds a security interest in inventory owned by Luc. Kyla protects her claim to the inventory in the event of Luc's default by

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Credit Financing, Inc., and Equity Lending Company are secured parties with security interests in property owned by Fleet Shipping Corporation. Priority between these security interests is generally determined by

Correct Answer
verified

Fiscal Credit Corporation asks Global Industries, Inc., to agree to a security agreement that provides for coverage of the proceeds from the sale of after-acquired property. This is

Correct Answer
verified

Don repays his debt, incurred to buy consumer goods, to EZ Retail Credit and immediately files a written request for a termination statement. EZ

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Market Credit Corporation is the secured party in a secured transaction with Northwest Outfitters. Market Credit could also be referred to as

Correct Answer
verified

Metro Motors files a financing statement giving notice to the public that it has a secured interest in collateral belonging to Nate's Limousine Service, which is the debtor named in the statement. A uniform financing statement used in all states is

Correct Answer
verified