True/False
Indicate whether the sentence or statement is true
or false.
|
|
|
1.
|
A
security interest is enforceable only if the collateral is in the secured party's
possession.
|
|
|
2.
|
The
person who owes the payment of a secured obligation is the secured party.
|
|
|
3.
|
A
security interest is not enforceable before the creditor's rights have attached to the
collateral.
|
|
|
4.
|
To
create an enforceable security interest, the secured party must give value.
|
|
|
5.
|
An
authenticated security agreement can be in an electronic medium.
|
|
|
6.
|
A
chair bought by a business office would be classified as a consumer good.
|
|
|
7.
|
To be
valid, a financing statement must contain a description of the collateral.
|
|
|
8.
|
The
state office in which a financing statement should be filed depends on the debtor's
location.
|
|
|
9.
|
Filing a financing statement with the appropriate public office is the only way to
perfect a purchase-money security interest in consumer goods.
|
|
|
10.
|
A
financing statement is effective for five months from the date of filing.
|
|
|
11.
|
A
purchase-money security interest arises only when a seller provides a buyer with the
"purchase money" to buy goods.
|
|
|
12.
|
A
continuation statement is effective only if it is filed within six months before the
expiration of a financing statement.
|
|
|
13.
|
A
debtor may give a creditor a security interest in inventory that the debtor expects to acquire in the
future.
|
|
|
14.
|
A
perfected security interest will always have priority over an unperfected security
interest.
|
|
|
15.
|
When
two secured parties have perfected security interests in the same collateral, generally the first to
perfect has priority.
|
|
|
16.
|
Under
certain conditions, a purchase-money security interest will take priority over a previous creditor's
interest in after-acquired property.
|
|
|
17.
|
A
financing statement cannot be amended once it has been filed.
|
|
|
18.
|
On
default, unless the security agreement states otherwise, the secured party has the right to repossess
collateral.
|
|
|
19.
|
To
qualify as a commercially reasonable sale, a secured party's sale of collateral, after default and
repossession, must be public.
|
|
|
20.
|
After
a default, and before a secured party disposes of the collateral, a debtor can exercise the right of
redemption.
|