Question 1

A financing statement must provide all of the following except: _______.

Accepted Answer

A)   the name of the debtor.
B)   the name of the secured party or their representative.
C)   the covered collateral.
D)   the value of the collateral.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Self-help repossession of collateral upon a buyer's default is contrary to public policy and is never allowed.

Accepted Answer

A) True 
 B)False

Question 5

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:

Accepted Answer

A)   by the certificate notation, when a non-inventory motor vehicle is involved.
B)   by filing under the UCC, regardless of how the vehicle is classified.
C)   by filing under the UCC, when the motor vehicle is inventory.
D)   either by the certificate notation or by a UCC filing, depending on how the state statute defines the term motor vehicle.

Question 6

In a secured transaction,the person to whom the money is owed is secured party and the buyer is the debtor.

Accepted Answer

A) True 
 B)False

Question 7

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.

Question 8

When the filing of a financing statement is defective: ______.

Accepted Answer

A)   the security interest is lost.
B)   the filing fails to perfect the security interest.
C)   the security interest is perfected through the court's application of equitable principles.
D)   the public notice of the creditor's interest is still effective.

Question 9

Electronic chattel paper is a record of a right to payment or property that is stored in an electronic medium.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

An after-acquired property clause in a consumer security agreement means that a creditor has a lien in the shifting stock of goods of the debtor.

Accepted Answer

A) True 
 B)False

Question 12

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 described

Question 13

A debtor may redeem collateral from the secured party at any time prior to sale or disposal by paying all legal costs and expenses incurred by the secured party.

Accepted Answer

A) True 
 B)False

Question 14

If a breach of the peace might occur:

Accepted Answer

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.

Question 15

In most states,__________ provides that a security interest in a non-inventory motor vehicle must be noted on the vehicle title registration.

Accepted Answer

A)   a non-Code statute
B)   UCC Article 2
C)   UCC Article 9
D)   judicial precedent

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The concept of perfection: ______.:

Accepted Answer

A)   creates a security interest.
B)   protects against the claims of others to the collateral.
C)   secures the rights of the creditor against the debtor.
D)   Converts unsecured creditors into secured creditors.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 33: Secured Transactions in Personal Property

When the filing of a financing statement is defective: ______.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In a secured transaction,the person to whom the money is owed is secured party and the buyer is the debtor.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is the purpose of a financing statement?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A debtor may redeem collateral from the secured party at any time prior to sale or disposal by paying all legal costs and expenses incurred by the secured party.

Correct AnswerverifiedShow Answer

In most states,__________ provides that a security interest in a non-inventory motor vehicle must be noted on the vehicle title registration.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Self-help repossession of collateral upon a buyer's default is contrary to public policy and is never allowed.

Correct AnswerverifiedShow Answer

A financing statement must provide all of the following except: _______.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If a breach of the peace might occur:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Electronic chattel paper is a record of a right to payment or property that is stored in an electronic medium.

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

The concept of perfection: ______.:

Correct AnswerverifiedShow Answer

An after-acquired property clause in a consumer security agreement means that a creditor has a lien in the shifting stock of goods of the debtor.

Correct AnswerverifiedShow Answer

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