In hopes of improving his social life, Peter purchased a new MX-5 Miata from Midlife Mazda for $35,000, putting $5,000 down and financing the balance with a loan from Shark Lending, for which he made a negotiable promissory note payable to Shark. The note is payable in equal monthly installments, together with interest at 12% per year, for a term of seven years. Peter’s agreement with Shark provided that in the event Peter defaults on the loan Shark is permitted to repossess the Miata. Shark did all it could under applicable state law relating to promissory notes and secured transactions to help assure that it would ultimately be fully paid on the loan, even though it knew that the Miata Peter purchased partly secured an inventory loan Midlife had with B Bank. Peter took title to the car and happily drove off to try and find a date. In these circumstances, the loan note and related security transactions are primarily covered under

a. mortgage lending law 

b. federal Bankruptcy law 

c. UCC Article 3

d. UCC Article 9 

e. c and d, together, are correct

Answer rating: 100% (QA)

UCC Article 9 which is Option D Explanation UCC Article 9 covers secured transactions whereby the le... View the full answer