Question 1

What is a secured transaction?

Accepted Answer

Most lenders take a security interest in...

Question 2

A two-party secured transaction occurs when a seller sells goods to a buyer on credit and retains a security interest in the goods.

Accepted Answer

A) True 
 B)False

Question 3

Article 9 of the Uniform Commercial Code governs secured transactions in personal property.

Accepted Answer

A) True 
 B)False

Question 4

A secured creditor must ________ the collateral if he or she receives a written objection to the proposal from a person entitled to receive notice within 20 days after the notice was sent.

Accepted Answer

A)  dispose of
B)  possess of
C)  retain
D)  claim

Question 5

________ is a situation in which a creditor agrees to extend credit only if the purchaser pledges some personal property as collateral for the loan.

Accepted Answer

A)  Floating lien
B)  Attachment
C)  Mortgage
D)  Secured credit

Question 6

Chattel paper is a record that evidences both a monetary obligation and a security interest in specific goods and software used in the goods.

Accepted Answer

A) True 
 B)False

Question 7

Chattel paper is considered tangible personal property.

Accepted Answer

A) True 
 B)False

Question 8

Financing statements are effective for five years from the date of filing.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following transactions occurs when a seller sells goods to a buyer on credit and retains a security interest in the goods?

Accepted Answer

A)  two-party secured
B)  three-party secured
C)  perfected
D)  attached

Question 10

Attachments are funds advanced to a debtor from a line of credit secured by collateral.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following refers to the assets resulting from the exchange or disposal of collateral subject to a security agreement?

Accepted Answer

A)  sale proceeds
B)  future advances
C)  floating lien
D)  after-acquired property

Question 12

The term "sales proceeds" refers to the resulting assets from the sale,exchange,or disposal of collateral subject to a security agreement.

Accepted Answer

A) True 
 B)False

Question 13

A creditor who has the only secured interest in the debtor's collateral has priority over unsecured interests.

Accepted Answer

A) True 
 B)False

Question 14

Distinguish between two-party and three-party secured transactions,and provide some examples.

Accepted Answer

Two-party secure transactions occur,for ...

Question 15

A financing statement refers to a document filed by a secured creditor with the appropriate government office that constructively notifies the world of his or her security interest in personal property.

Accepted Answer

A) True 
 B)False

Question 16

John buys a new car with the help of a loan.He permits the creditor to take possession of the car if he cannot repay the loan in time.Here,the car is the ________.

Accepted Answer

A)  after-acquired property
B)  collateral
C)  intangible personal property
D)  floating lien

Question 17

Which of the following is true of disposition of collateral?

Accepted Answer

A)  Disposition of collateral must be a public proceeding.
B)  The debtor is entitled to receive any surplus collateral that remains after disposition.
C)  The debtor need not be notified of the disposition as the creditor has complete claim on the collateral.
D)  Disposition of collateral occurs when the default is by the creditor.

Question 18

Which of the following is true of financing statements?

Accepted Answer

A)  They cannot be electronically filed.
B)  They are effective for one year from the date of filing.
C)  They cannot be extended once they expire.
D)  They are available for review by the public.

Question 19

Attachment is a situation in which the value of a creditor's collateral is insufficient to satisfy the debt for which it is collated.

Accepted Answer

A) True 
 B)False

Question 20

After-acquired property is property obtained by the creditor after a security agreement has been executed.

Accepted Answer

A) True 
 B)False

Exam 27: Secured Transactions

A creditor who has the only secured interest in the debtor's collateral has priority over unsecured interests.

Correct AnswerverifiedShow Answer

John buys a new car with the help of a loan.He permits the creditor to take possession of the car if he cannot repay the loan in time.Here,the car is the ________.

Correct AnswerverifiedShow Answer

A financing statement refers to a document filed by a secured creditor with the appropriate government office that constructively notifies the world of his or her security interest in personal property.

Correct AnswerverifiedShow Answer

Distinguish between two-party and three-party secured transactions,and provide some examples.

Correct AnswerverifiedTwo-party secure transactions occur,for ...View AnswerShow Answer

A two-party secured transaction occurs when a seller sells goods to a buyer on credit and retains a security interest in the goods.

Correct AnswerverifiedShow Answer

Which of the following is true of disposition of collateral?

Correct AnswerverifiedShow Answer

What is a secured transaction?

Correct AnswerverifiedMost lenders take a security interest in...View AnswerShow Answer

A secured creditor must ________ the collateral if he or she receives a written objection to the proposal from a person entitled to receive notice within 20 days after the notice was sent.

Correct AnswerverifiedShow Answer

Which of the following refers to the assets resulting from the exchange or disposal of collateral subject to a security agreement?

Correct AnswerverifiedShow Answer

Article 9 of the Uniform Commercial Code governs secured transactions in personal property.

Correct AnswerverifiedShow Answer

Financing statements are effective for five years from the date of filing.

Correct AnswerverifiedShow Answer

Which of the following is true of financing statements?

Correct AnswerverifiedShow Answer

The term "sales proceeds" refers to the resulting assets from the sale,exchange,or disposal of collateral subject to a security agreement.

Correct AnswerverifiedShow Answer

After-acquired property is property obtained by the creditor after a security agreement has been executed.

Correct AnswerverifiedShow Answer

Chattel paper is a record that evidences both a monetary obligation and a security interest in specific goods and software used in the goods.

Correct AnswerverifiedShow Answer

Attachments are funds advanced to a debtor from a line of credit secured by collateral.

Correct AnswerverifiedShow Answer

Attachment is a situation in which the value of a creditor's collateral is insufficient to satisfy the debt for which it is collated.

Correct AnswerverifiedShow Answer

Which of the following transactions occurs when a seller sells goods to a buyer on credit and retains a security interest in the goods?

Correct AnswerverifiedShow Answer

Chattel paper is considered tangible personal property.

Correct AnswerverifiedShow Answer

________ is a situation in which a creditor agrees to extend credit only if the purchaser pledges some personal property as collateral for the loan.

Correct AnswerverifiedShow Answer

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Two-party secure transactions occur,for ...
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Most lenders take a security interest in...
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