12 Questions
What is the term used to describe a transaction in which the payment of a debt is guaranteed by personal property owned by the debtor?
Secured transaction
What is the term used to describe the person or party that holds an interest in secured property?
Secured party
What is the term used to describe the property subject to a security interest?
Collateral
What are the requirements for creating a secured interest?
written agreement and value
What type of property can be used as collateral?
Goods, farm products, inventory, equipment, fixtures, and accessories
What is the purpose of a security agreement?
To create a secured interest
What is necessary for a security interest to be perfected by filing?
All of the above are necessary.
What type of security interest is formed when a debtor uses borrowed money to buy collateral?
Purchase-money security interest (PMSI)
How long is a financing statement valid for consumer goods?
5 years
What is retained by the seller of the collateral?
The security interest
What is required on a financing statement?
A description of the collateral
Where must the financing statement be filed under the name of the?
Debtor
Test your understanding of secured transactions, including secured interest, secured party, debtor, security agreement, and collateral. Evaluate your knowledge of the key terms and concepts related to secured transactions.
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