Bass, an automobile dealer, had an inventory of 40 cars and 10 trucks. He financed the...

 

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Bass, an automobile dealer, had an inventory of 40 cars and 10 trucks. He financed the purchase of this inventory with County Bank under an agreement dated January 5 that gave the bank a security interest in all vehicles on Bass's premises, all future- acquired vehicles, and the proceeds from their sale. Bass received possession of the inventory on the same date. On January 10, County Bank properly filed a financing statement that identified the collateral in the same way that it was identified in the agreement. On April 1, Bass sold a passenger car to Dodd for family use and a truck to Diamond Company for its hardware business. Which of the following is true? A) The security agreement may not provide for a security interest in after- acquired property even if the parties so agree. D) The security interest of County Bank does not include the proceeds from the sale of the truck to Diamond Company. O B) County Bank's security interest is perfected as of January 10. C) The passenger car sold by Bass to Dodd continues to be subject to the security interest of County Bank. Bass, an automobile dealer, had an inventory of 40 cars and 10 trucks. He financed the purchase of this inventory with County Bank under an agreement dated January 5 that gave the bank a security interest in all vehicles on Bass's premises, all future- acquired vehicles, and the proceeds from their sale. Bass received possession of the inventory on the same date. On January 10, County Bank properly filed a financing statement that identified the collateral in the same way that it was identified in the agreement. On April 1, Bass sold a passenger car to Dodd for family use and a truck to Diamond Company for its hardware business. Which of the following is true? A) The security agreement may not provide for a security interest in after- acquired property even if the parties so agree. D) The security interest of County Bank does not include the proceeds from the sale of the truck to Diamond Company. O B) County Bank's security interest is perfected as of January 10. C) The passenger car sold by Bass to Dodd continues to be subject to the security interest of County Bank.

Answer rating: 100% (QA)

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