A "secured transaction" is a transaction between a buyer and seller in which the buyer pays the full price in cash without having to borrow money.
Select one:
True
False
False
In a debtor-creditor relationship, the creditor is the party who owes money to the debtor.
Select one:
True
False
False
A "secured party" is a creditor who has a security interest in property.
Select one:
True
False
True
Every security interest requires a written security agreement that describes the collateral AND is signed by the person who owes the money.
Select one:
True
False
False
A secured creditor has the legal right to peacefully take the collateral from a debtor who has defaulted without first going to court.
Select one:
True
False
True
A "default" refers to .......
the failure to repay a debt including interest or principal on a loan or security.
When a secured debt is paid in full, the secured creditor should send a termination statement to the debtor or file it with the appropriate State or County office.
Select one:
True
False
True
Once default has occurred and the secured party has obtained possession of the collateral, the secured party has a right to ........
retain or sell the goods and the proceeds to the debt.
A financing statement is effective for 5 years and can NOT be continued beyond that time.
Select one:
True
False
False
ill purchased a 2016 Mustang from Ford Motor Company. Ford provided financing to Bill that required Bill to make monthly payments over the next 5 years. Bill signed a document stating that if he failed to make the monthly payments, then Ford Motor Company
Lien
Sylvia purchased a 2016 MXZ Ski-Doo snowmobile from Bombardier. Bombardier provided financing to Sylvia that required Sylvia to make monthly payments over the next 3 years. Sylvia signed a document stating that if she failed to make the monthly payments,
Collateral
A "security interest" is enforceable once it attaches to the
Select one:
a. collateral
b. creditor
c. debtor
d. lien
a. collateral
Perfection" of a security interest requires the filing of a(n)
Select one:
a. collateral agreement
b. financing statement
c. security agreement
d. sworn statement
b. financing statement
Kmart borrowed $1 million Dollars from Citi Bank. Repayment of the loan was secured by Kmart's inventory of televisions and the proceeds from their sale. Kmart sold thousands of these televisions to consumers but has now defaulted on the loan by failing t
d. NOT do anything because the goods were consumer goods sold in the ordinary course of business
On April 25, Jakar bought a riding lawnmower from John Deere. That same day, John Deere filed a financing statement that listed the mower as collateral to secure the loan to Jean. On April 30, Jakar purchased a boat from Boats-R-Us. On May 1, Boats-R-Us f
b. John Deere has priority over the mower. Boats-R-Us has priority over the boat.
Phil borrowed $15,000 to buy a motorcycle and gave the motorcycle as security for the loan but failed to make the payments. The balance still owed on the loan was $12,000. The lender repossessed the motorcycle and sold it at public auction for $8,000. Phi
c. $4,000 AND the lender's reasonable expenses to retake, hold, and sell the motorcycle
Mitsui borrowed $22,000 to buy a car and used the car as security for the loan. Mitsui stopped making the payments but still owed $15,000 on the loan. The lender repossessed the car and held it. Before the lender sells the car, Mitsui may exercise her rig
d. the $15,000 still owed, the secured party's (lender's) expenses in repossessing the car, and expenses listed in the security agreement that may include the secured party's reasonable attorney's fees and legal expenses, if any
Lee bought equipment from Mary on credit. Lee gave Mary a security interest in all the equipment that Lee bought in addition to the equipment that Lee already owned. The security agreement also contained an after-acquired property clause. Two months later
c. Yes, under the after-acquired property clause, Mary has a security interest in all of Lee's equipment including that which Nick sold to Lee
To be enforceable, a financing statement must contain all of the following EXCEPT
Select one:
a. a description of the collateral
b. the debtor's name
c. the reason for the transaction
d. the secured party's name
c. the reason for the transaction
Jerika bought a soda from a vending machine on the college campus by putting $1.50 in the machine. The transaction is a
Select one:
a. secured transaction
b. not a secured transaction
b. not a secured transaction