Econ 189-Assignment#3

Econ 189-Assignment#3 - The line of credit establishes the...

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May 23, 2009 Econ 189 Assignment #3- Secured Transactions 1. C, Shore’s security interest in the sofas attached on March 10, 2004 because that is the date on which the two parties created a security agreement, the secured party gave value to get the security agreement, and the debtor had a right to the collateral. Shore now has security interest in the collateral. 2. C, Shore’s security interest in the sofas became perfected on March 10, 2004 because that is the date on which a financing statement was filed. According to the UCC, a financing statement is the most common way to perfect an interest with a state agency. 3. A, Float’s security interest in Gray’s inventory attached on February 1, 2004 since that is the date in which Gray negotiated a line of credit with Float Bank.
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Unformatted text preview: The line of credit establishes the fact that the secured interest is now attached. 4. C, Floats security interest in Grays inventory perfected on March 5, 2004 because that is the day Float filed a financing agreement which is the most common way to perfect an interest. 5. B, Floats security interest has priority over Shore because Float filed their financing agreement before Shore. Float filed their financing agreement on March 5, 2004 while Shore filed their financing agreement on March 10, 2004. 6. C, Dove purchased the sofa free of either Shore or Float security interests because once the sofa was purchased by Dove, Shore and Float both lost any interest it had when it was sold....
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