Question

1. Generally, a security interest is perfected when the

1. Secured party has a legally enforceable right to take that property and sell it to satisfy the debt

2. Goods are sold, but regained as soon as the debtor takes possession of the new property

3. Buyer takes the property subject to a mortgage and the seller agrees to continue paying the debt

4. Secured party has done everything that the law requires to give the secured party greater rights to the goods than others have

2. Which of the following is true of recording a mortgage?

1. Recording a mortgage notifies any third party that the mortgagee has an interest in the real property covered by the mortgage

2. The second mortgagee must know about the first mortgage and is exempt from recording the mortgage

3. If the mortgage is not recorded and a later mortgage is given on the same property, the old mortgage is superior to the second

4. A failure to record the first mortgage would remove the obligation of the mortgage to the first mortgagee

3. The only individuals specifically excluded from filing under Chapter 11 are

1. Commodity brokers and stockbrokers

2. Real estate developers

3. Chartered accountants

4. Lawyers and judges

Answer 1

D. Secured party has done everything that the law requires to give the secured party greater rights to the goods than others have is the state in which a security interest is perfected. Whereas the remaining ones are not applicable in this context.

A. Recording a mortgage notifies any third party that the mortgagee has an interest in the real property covered by the mortgage is true of recording a mortgage. Whereas the remaining ones are not true in this context.

A. Commodity brokers and stockbrokers are the only individuals specifically excluded from filing under Chapter 11. Whereas the remaining ones are not excluded from filing under Chapter 11.