Question: A contract between the debtor and creditor by which the debtor grants the creditor a security interest in collateral is called a ______________. Financing Statement
A contract between the debtor and creditor by which the debtor grants the creditor a security interest in collateral is called a ______________.
| Financing Statement | ||
| A Security Agreement | ||
| A Collateral Pledge | ||
| None of the above |
"Martin borrowed money from Big Bank which was used to purchase a painting, Yellow Dogs Playing Pool, for his home. Martin signed an agreement making the painting itself collateral for the debt. Big Bank did not bother filing a financing statement. Does Big Bank have a perfected security interest?"
| "No, because it did not file a financing statement" | ||
| "Yes, because it has constructive possession through the debtor Martin." | ||
| "Yes, because the security interest in this transaction will be perfected without filing or possession by the creditor because it is a PMSI in consumer goods" | ||
| "No, Big Bank was not the seller, so the transaction is not a purchase money transaction." |
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