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Exam 29: Secured Transactions

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Question 41

Multiple Choice

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The payment of Mo's debt to Neil is guaranteed by Mo's personal property. This is

A) governed by Article 2 of the UCC.
B) governed by Article 3 of the UCC.
C) governed by Article 9 of the UCC.
D) not governed by the UCC.

E) None of the above
F) A) and C)

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Question 42

Multiple Choice

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Everyday Loans, Inc., takes possession of Frank's stock in Gamma Corporation to perfect Everyday's security interest in the stock. This is

A) after-acquired property.
B) a pledge.
C) a purchase-money security interest.
D) proceeds.

E) None of the above
F) All of the above

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Question 43

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

Fact Pattern 29-1B Tech Support Corporation uses its office equipment as collat?eral for a loan from United Bank. The bank files a financing statement with the secretary of state in the state in which Tech Support was chartered. One year later, Tech Support changes its name to Vector, Inc. -Refer to Fact Pattern 29-1B. United Bank's perfection will remain effec?tive for

Hal's Hardware store defaults on a debt to Intrastate Bank, which takes possession of the collateral securing the debt. Intrastate sells the collat?eral. The proceeds from the sale are applied first to

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

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

A security interest that provides for a security interest in proceeds is a floating lien.

Mona lives in New Jersey, but she works in New York. Mona borrows $1,000 from National Bank, using her motorcycle as collateral. To perfect its security in?terest, the bank must file its financing statement in at least

Fact Pattern 29-1A Excel Vehicles, Inc., makes and sells automobiles to auto dealers, including Fine Auto Sales. Fine sells the cars to consumers and businesses. -Refer to Fact Pattern 29-1A. A car in Fine's possession is probably

The payment of Nero's debt to Olly is guaranteed by Nero's personal property. Nero is located in Pennsylvania. Olly communicates to the appropriate state official a security agreement that uses only Quality Engineering, the trade name of Nero's business. To perfect Olly's interest, this is

The payment of Frida's debt to Gianini is guaranteed by Frida's personal property. Gianini is

To be valid, a security agreement must contain a description of the collateral.

A pledge is a promise by a debtor to take reasonable care of the collateral.

The payment of Brian's debt to Chuck is guaranteed by Brian's personal property. This is

Fact Pattern 29-2B General Leasing Company buys equipment for use as inventory, borrow?ing $1 million from Helpful Finance Corporation for a security in?terest in the equipment. The next day, GLC borrows $500,000 from Interstate Bank, also for a security interest in the equipment. GLC defaults on the loans. -Refer to Fact Pattern 29-2B. Suppose that two weeks after GLC takes possession of the equipment, Helpful and Interstate file financing statements, with Interstate fil?ing first. In that cir?cum?stance, the party with priority to the equipment is

The concept of a floating lien does not apply to a shifting stock of goods.

The state office in which a financing statement should be filed depends on the creditor's location.

The payment of Jose's debt to Klint is guaranteed by Jose's personal property. The process by which Klint can protect himself against the claims of third parties to this property is

A description of collateral as "all the debtor's as?sets" is too general to reasonably identify the subject of a security agreement.