Chapter 30 - Secured Transactions Chapter 30 Secured Transactions True / False Questions 1. Collateral is the property that is subject to a security interest. True False 2. To become a secured party, the creditor must perfect a security interest in the collateral of the debtor. True False 3. According to the UCC, value is consideration. True False 4. The person who fails to make payments is said to have defaulted on a loan. True False 5. When perfection by possession occurs, the parties must have a written security agreement. True False 6. Perfection of a security interest in a motor vehicle generally occurs when the secured party files the interest with the state's Department of Motor Vehicles. True False 7. A security interest may apply to personal property that is not yet in the debtor's possession. True False 30-1
Chapter 30 - Secured Transactions 8. Generally, unsecured parties have priority over secured creditors. True False 9. Under the UCC, a buyer in the ordinary course of business can take goods free of any security interest created by the seller of the goods unless the security interest is perfected. True False 10. If a buyer purchases chattel paper, in the ordinary course of business, the buyer can obtain the good free of any security interest without any other requirement. True False Multiple Choice Questions 11. A(n) ______ is a transaction in which the payment of a debt is guaranteed by personal property owned by the debtor. A. Approved transfer B. Approved guarantee C. Secured transaction D. Effected transaction E. Guaranteed debt 12. Which of the following articles of the UCC governs secured transactions and personal property? A. Article 1. B. Article 4. C. Article 5. D. Article 7. E. Article 9. 30-2
Chapter 30 - Secured Transactions 13. Which of the following is an interest in personal property or fixtures which secures payment or performance of an obligation? A. An approved interest. B. A secured interest. C. A secured transaction. D. A debt transaction. E. A security agreement. 14. Which of the following is the person or party that holds the interest in the secured property? A. A debtor. B. A transaction party. C. An approved party. D. A secured party. E. An attached party. 15. A ______ is a person or party that has an obligation to the secured party. A. creditor B. debtor C. secured creditor D. secured debtor E. transaction debtor 16. Which of the following is the agreement by which the debtor gives the secured interest to the secured party? A. Collateral agreement. B. Secured interest. C. Debtor agreement. D. Secured transaction. E. Security agreement. 30-3
Chapter 30 - Secured Transactions 17. Which of the following are examples of collateral? A. Goods. B. Indispensable paper. C. Intangibles. D. All of the above. E. Goods and indispensable paper, but not intangibles. 18. Which of the following are examples of goods?
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