Question

7).

Between two perfected security interests

Select one:

a. has equal rights to the collateral and therefore the collateral must be divided.

b. the situation is resolved by giving the collateral to the first to attach.

c. the first to perfect (file or take possession) has priority over the collateral.

8).

Cash from the sale of repossessed and sold collateral first goes to pay

Select one:

a. the expenses of repossessing, storing, and selling the collateral.

b. the balance of the debt.

c. reimbursing the debtor for repairing damage to his property when the creditor repossessed it, as long as the costs are reasonable.

9)

mproperly filing a Finance Statement

Select one:

a. reduces the creditor's claim to a secondary position.

b. reduces the creditor's claims to that of an unsecured creditor.

c. has no negative consequence.

10).

mproperly filing a Finance Statement

Select one:

a. reduces the creditor's claim to a secondary position.

b. reduces the creditor's claims to that of an unsecured creditor.

c. has no negative consequence.

11).

Which of the following is not a requirement for the creation of a security interest?

Select one:

a. The debtor must have rights in the collateral.

b. A written security agreement.

c. The debtor must repay the entire debt before the creditor will return the collateral.

d. The creditor must give something of value to the debtor, usually a loan.

Answer 1

As we know that, When two or more secured parties have perfected security interests in the same collateral, generally the first to perfect has priority.

7).The correct option is (c).

the first to perfect (file or take possession) has priority over the collateral.

8). The correct option is (a).

the expenses of repossessing, storing, and selling the collateral.

9). And 10). Are same questions.

The correct option is (a).

reduces the creditor's claim to a secondary position.

The creditors are reduced to secondary position.

11). The correct option is (c).

The debtor must repay the entire debt before the creditor will return the collateral.

There are three requirements for creating a security interest. (1) the secured party gives value; like a loan (2) the debtor has rights in the collateral (3) the parties have a security agreement “authenticated” (signed) or written agreement.

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