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1.
(p. 660)
Collateral is the property that is subject to a security interest.
2.
(p. 661)
To become a secured party, the creditor must perfect a security interest in the collateral
of the debtor.
3.
(p. 662)
According to the UCC, value is consideration.
4.
(p. 662)
The person who fails to make payments is said to have defaulted on a loan.
5.
(p. 664)
When perfection by possession occurs, the parties must have a written security
agreement.
6.
(p. 668)
Perfection of a security interest in a motor vehicle generally occurs when the secured
party files the interest with the state's Department of Motor Vehicles.
7.
(p. 668)
A security interest may apply to personal property that is not yet in the debtor's
possession.
8.
(p. 669)
Generally, unsecured parties have priority over secured creditors.
9.
(p. 671)
Under the UCC, a buyer in the ordinary course of business can take goods free of any
security interest created by the seller of the goods unless the security interest is perfected.
10.
(p. 672)
If a buyer purchases chattel paper in the ordinary course of business and without notice
of any prior security interest, the buyer can obtain the good involved free of any security interest.
11.
(p. 660)
A(n) ______ is a transaction in which the payment of a debt is guaranteed by personal
property owned by the debtor.
12.
(p. 660)
Which of the following articles of the UCC governs secured transactions in personal
property?
13.
(p. 660)
Which of the following is an interest in personal property or fixtures which secures
payment or performance of an obligation?
14.
(p. 660)
Which of the following is the person or party that holds the interest in the secured
property?
15.
(p. 660)
A ______ is a person or party that has an obligation to the secured party.
16.
(p. 660)
Which of the following is the agreement by which the debtor gives the secured interest to
the secured party?
17.
(p. 660)
Which of the following is true regarding what may constitute collateral?
18.
(p. 660)
Which of the following
is not
an example of a good?
19.
(p. 666)
Which of the following was the result in the bankruptcy case in the text
In re Robert O.
Troupe and Dawn Lynn Troupe
involving the issue of whether a tractor dealer's failure to file a
financing statement rendered its purchase money security interest unperfected because the
tractor was equipment used for business purposes, or whether the security interest was
automatically perfected as an interest in a consumer good?
20.
(p. 660)
Which of the following is false regarding types of collateral?
21.
(p. 661)
When ______ occurs, the creditor becomes the secured party who has a security interest
in the collateral.
22.
(p. 662)
Which of the following is formed when a debtor uses borrowed money from the secured
party to buy the collateral?
23.
(p. 663)
Which of the following is defined as the series of legal steps a secured party takes to
protect its rights and collateral from other creditors who wish to have their debts returned
through the same collateral?
24.
(p. 663)
According to the UCC, which of the following should a financing statement list?
25.
(p. 664)
Once a financing statement has been filed with a correct agency, for how long is the
statement valid under the UCC?
26.
(p. 664)
Transfer of collateral to a secured party is called a[n] ____.
27.
(p. 665)
Which of the following under the UCC is a good used or bought for use primarily for
personal, family, or household purposes?
