Question

QUESTION 51

To have an enforceable security interest in collateral that is in the possession of the secured party, there must be a written security agreement.

True

False

QUESTION 52

A security interest is perfected when the creditor has possession of the collateral.

True

False

QUESTION 53

The statute of frauds requires all sales contracts to be in writing in order to be enforceable.

True

False

QUESTION 54

A junior perfected party may prevent a senior perfected party who has repossessed the collateral from retaining it.

True

False

QUESTION 55

One filing may give a secured party an interest in presently owned inventory, after acquired inventory, proceeds & future advances.

True

False

Answer 1

51 - To become a secured party, the creditor must obtain a security interest in the collateral of the debtor. The first criterion for this is the collateral must be in the posession of the secured party in accordance with an agreement or there must be a written security agreement that describes the collateral subject to security interest and is signed by the debtor. So the answer is True.

52 - If the secured interest is perfected then no other third party can claim the collateral. The perfected security interest takes precedence over other claims. So the interest is perfected by taking posession of the collateral. The answer is True.

53 - Only certain contracts have to be in writing under the Statute of Frauds i.e. those contracts with sale of goods worth $500 or more. Answer is False.

54 - A secured creditor with an interest that is subordinate to another interest in the collateral may foreclose on a piece of collateral without participation from the senior creditor and may also prevent a senior perfected party who has repossessed the collateral from retaining it. This is True.

55 - The security interest in the after acquired property reaches the proper level of perfection at the time of filing. So this statement is True.