UCC Article 9 and Security Agreements Quiz

The composite document test is a means of piecing together an enforceable financing statement from multiple documents.

The standard form financing statement found in UCC §9-521 will not ordinarily qualify as a security agreement. (correct)

A court will presume that a debtor intended to create a security interest, even where no “granting language” was used.

A debtor is required to sign a security agreement, and electronic security agreements are not permitted.

The drawee is already obligated to make final payment on a cashier’s check, while the drawee of a personal check may not be obligated.

In a cashier’s check, the remitter’s obligation to pay is merged into the negotiable instrument. In a personal check, the drawer’s obligation to pay is not merged into the negotiable instrument. (correct)

A cashier’s check is always backed by a financial institution, while a personal check may not be backed by sufficient funds.

A cashier’s check is considered unconditional payment, while a personal check is conditional payment.

The UCC permits courts to apply the “rebuttable presumption” test to determine whether a secured party who has failed to provide sufficient notice prior to disposition of consumer goods may nevertheless recover a deficiency from the debtor following a commercially reasonable sale.

The secured party has no right to retain the collateral, even in total satisfaction of the secured debt, if the debtor is not willing to give its consent to this disposition of the collateral. (correct)

A secured party who wishes to sell the collateral it has repossessed must obtain permission from the debtor, as well as any junior secured parties.

Commercial reasonableness is among the rights that Article 9 does not allow a debtor to waive, even after an event of default.

<p>A secured party who wishes to sell the collateral it has repossessed must obtain permission from the debtor, as well as any junior secured parties.</p> Signup and view all the answers

<p>A secured party who wishes to sell the collateral it has repossessed must obtain permission from the debtor, as well as any junior secured parties.</p> Signup and view all the answers

<p>A secured party who wishes to sell the collateral it has repossessed must obtain permission from the debtor, as well as any junior secured parties.</p> Signup and view all the answers

<p>The secured party has no right to retain the collateral, even in total satisfaction of the secured debt, if the debtor is not willing to give its consent to this disposition of the collateral.</p> Signup and view all the answers