Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

_______ occurs when a bank is able to require the debtor account holder to clear all transactions in that account.

Accepted Answer

A)  Control
B)  Perfection.
C)  Termination
D)  RedemptionE) A) and D)
F) B) and C)

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Under Revised UCC Article 9,a financing statement must be signed by the debtor.

Accepted Answer

A) True 
 B)False

Question 5

Perfection of a security interest takes place:

Accepted Answer

A)  upon the creditor's possession of the collateral.
B)  upon attachment in the case of a purchase money security interest in consumer goods.
C)  upon the filing of a financing statement.
D)  all of the above.E) All of the above
F) B) and C)

Question 6

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

Accepted Answer

A)  five (5) years,and is renewable.
B)  five (5) years,and is non-renewable.
C)  ten (10) years,and is renewable.
D)  ten (10) years,and is non-renewable.E) None of the above
F) B) and C)

Question 7

Consumer goods are not subject to perfection of a security interest.

Accepted Answer

A) True 
 B)False

Question 8

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.

Accepted Answer

A)  execution
B)  discharge
C)  termination
D)  hold harmlessE) A) and D)
F) B) and C) C

Question 9

When a consumer gives a creditor a security interest in forthcoming health insurance proceeds,the creditor must file a statement with the insurance company in order to have a perfected security interest.

Accepted Answer

A) True 
 B)False  False

Question 10

A debtor may redeem collateral at any time prior to the time that the secured party has disposed of the collateral or entered into a binding contract for resale by tendering the entire obligation that is owed plus any legal costs and expenses incurred by the secured party.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  priority goes to the creditor who perfected first.
B)  priority goes to the creditor who is owed the greatest amount of money.
C)  each perfected secured creditor has a 50% interest in the collateral.
D)  Both perfected secured creditors are treated like unsecured creditors in regards to the collateral.E) A) and C)
F) A) and B)

Question 12

Upon a default by a buyer,the secured seller may resell the collateral:

Accepted Answer

A)  not less than three (3) months after the buyer's default.
B)  not less than six (6) months after the buyer's default.
C)  only at a public sale.
D)  at either a public or a private sale.E) C) and D)
F) B) and C)

Question 13

What is the purpose of a financing statement?

Accepted Answer

A)  to meet UCC accounting requirements under Article 9
B)  to create a security interest
C)  to amend a security agreement
D)  to alert third persons that a creditor has a security interest in the collateral describedE) A) and C)
F) A) and B)

Question 14

An interest in personal property or fixtures that secures payment or performance of an obligation is called a:

Accepted Answer

A)  guaranty holding.
B)  security interest.
C)  guaranty interest.
D)  good-faith guaranty.E) B) and C)
F) All of the above

Question 15

A security agreement must be backed by a written record even if the creditor has possession of the collateral.

Accepted Answer

A) True 
 B)False

Question 16

The steps in terminating a financing transaction upon full payment by the debtor include the preparation of a termination statement by the creditor and the presentation of the statement to the filing officer,who marks the record "terminated."

Accepted Answer

A) True 
 B)False

Question 17

A security interest gives a creditor the same protection than is afforded by a right to sue on the debt.

Accepted Answer

A) True 
 B)False  False

Question 18

A security agreement must:

Accepted Answer

A)  identify the parties involved.
B)  contain a reasonable description of the collateral.
C)  demonstrate that the parties intended for the creditor intends to have a security interest.
D)  all of the above.E) C) and D)
F) All of the above

Question 19

Generally,a secured creditor who has repossessed collateral may retain the collateral and cancel the debt.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 34: Secured Transactions in Personal Property

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

Correct AnswerverifiedShow Answer

_______ occurs when a bank is able to require the debtor account holder to clear all transactions in that account.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Under Revised UCC Article 9,a financing statement must be signed by the debtor.

Correct AnswerverifiedShow Answer

Perfection of a security interest takes place:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Consumer goods are not subject to perfection of a security interest.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedC

When a consumer gives a creditor a security interest in forthcoming health insurance proceeds,the creditor must file a statement with the insurance company in order to have a perfected security interest.

Correct AnswerverifiedFalse

A debtor may redeem collateral at any time prior to the time that the secured party has disposed of the collateral or entered into a binding contract for resale by tendering the entire obligation that is owed plus any legal costs and expenses incurred by the secured party.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Upon a default by a buyer,the secured seller may resell the collateral:

Correct AnswerverifiedShow Answer

What is the purpose of a financing statement?

Correct AnswerverifiedShow Answer

An interest in personal property or fixtures that secures payment or performance of an obligation is called a:

Correct AnswerverifiedShow Answer

A security agreement must be backed by a written record even if the creditor has possession of the collateral.

Correct AnswerverifiedShow Answer

The steps in terminating a financing transaction upon full payment by the debtor include the preparation of a termination statement by the creditor and the presentation of the statement to the filing officer,who marks the record "terminated."

Correct AnswerverifiedShow Answer

A security interest gives a creditor the same protection than is afforded by a right to sue on the debt.

Correct AnswerverifiedFalse

A security agreement must:

Correct AnswerverifiedShow Answer

Generally,a secured creditor who has repossessed collateral may retain the collateral and cancel the debt.

Correct AnswerverifiedShow Answer

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

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
C

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified