Multiple choice questions:

1. The automatic stay provided for by the Bankruptcy Act

a. Arises only upon the filing of a voluntary petition for bankruptcy.

b. Ends if a debtor attempts to incur additional debt after the bankruptcy petition has been filed.

c. Prevents any further interest from accruing on a debtor's outstanding debts.

d. Prevents creditors from taking action against a debtor.

2. Which of the following is not an element of attachment?

a. A security agreement.

b. Filing a financing statement.

c. The debtor has rights in the collateral.

d. Value received by the debtor.

3. When a debtor defaults on a secured debt, the creditor

a. May only proceed against any surety on the obligation.

b. May only proceed against the security in order to have it sold and the proceeds applied to the debt.

c. May only continue efforts to collect from the debtor personally the funds that are owed.

d. May continue efforts to collect from the debtor personally the funds that are owed, may proceed against the security in order to have it sold and the proceeds applied to the debt, or may proceed against any surety on the obligation.

4. What is the purpose of a financing statement?

a. To alert third parties that a creditor has a security interest in certain collateral.

b. To create a security interest.

c. To meet the Uniform Commercial Code (UCC) accounting requirements under Article 9 of the UCC.

d. To amend a security interest.

5. Proceedings under Chapter 7 of the Bankruptcy Code are

a. Extended time-payment plans.

b. Liquidation proceedings.

c. Reorganizations.

d. Always voluntary in nature.

6. A creditor protects the security interest against a third party's competing claims or rights in and to the secured property by

a. Perfecting the security agreement.

b. Maintaining the right to deficiency judgments.

c. Repossessing the property prior to default.

d. Granting the right to redeem the property.

7. Real property includes

a. Only buildings and fixtures.

b. Land, buildings and fixtures, and rights in the land of another

c. Only land.

d. Only rights in the land of another.

8. Which of the following would be considered to be a fixture?

a. Wall-to-wall carpeting.

b. A desk lamp.

c. A table-top television set.

d. An automobile.

9. The relatives of an individual who dies without a will may acquire title to the decedent's property by

a. Intestate succession.

b. The right of replevin.

c. Interstate decree succession.

d. The right of acquisition.

10. Perfection of a security interest takes place

a. Upon the creditor's possession of the collateral, upon attachment in the case of a purchase money security interest (PMSI), or upon the filing of a financing statement (UCC-1 filing).

b. Only upon the filing of a financing statement (UCC-1 filing).

c. Only upon attachment in the case of a purchase money security interest (PMSI).

d. Only upon the creditor's possession of the collateral.