Ch30 - Chapter 30 TRUE/FALSE QUESTIONS B1 A financing...

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Chapter 30TRUE/FALSE QUESTIONSB1.A financing statement is an agreement that creates or provides for a securityinterest.
FB2.Attachment gives the debtor a defense against a creditor’s attempt to enforce asecurity interest in the debtor’s collateral.
B3.A security interest is enforceable only if the collateral is in the creditor’spossession.
B4.For a creditorto have an enforceable security interest, the debtormust haverights in the collateral.
TB5.Authentication means to sign, execute, or adopt any symbol on an electronicrecord that verifies that the person signing has the intent to adopt or accept therecord.
TB6.Perfection is usually accomplished without filing a financing statement.
B7.The UCC requires that a financing statement be filed under the name of thecreditor.
B8.In general, it is sufficient to provide only the debtor’s trade name (or fictitiousname) in a financing statement for perfection.
B9.Either the security agreement or the financing statement—but not both—mustdescribe the collateral in which the secured party has a security interest.
FB10.A security agreement need not be in writing if the collateral is transferred to thesecured party.
TB11.A purchase-money security interest in consumer goods is perfectedautomatically at the time it is created.
B12.A security interest can cover property in which the debtor has ownership orpossessory rights in the present or in the future.
TB13.When more than one party claims an interest in the same collateral, aperfected secured party’s interest has priority over the interest of most otherparties.
TB14.On a debtor’s default, he perfection of a security interest will not always protecta secured party against other third parties having claims to the collateral.
TB15.A buyer in the ordinary course of business takes the goods free from anysecurity interest created by the seller unless the security interest is perfected.
FB16.The debtor has the right to request a confirmation of the unpaid debt or list ofcollateral without charge every six months.
TB17.Any breach of the terms of the security agreement can constitute default.
TB18.The rights and remedies of secured parties are notcumulative—if a creditor isunsuccessful in enforcing rights by one method, he or she cannot pursueanother method.

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