Unformatted text preview: party. He has met all the necessary criteria listed under UCC 9–203 to be a secured creditor. Mendez has given value of $5,000 and has taken possession of the collateral, Arabian Knight, owned by Marsh (who has rights in the collateral). Thus, he has a security interest even though Marsh did not sign a security agreement. Once a security interest attaches, a transfer of possession of the collateral to the secured party can perfect the party’s security interest without a filing [UCC 9–310(b)(6); 9–313]. Thus, a security interest was created and per-fected at the time Marsh transferred Arabian Knight to Mendez as security for the loan....
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- Spring '11
- Business Law, Uniform Commercial Code, Security interest, Mendez, Sample answer